Apple on Thursday was the last of the five biggest US technology companies to report financial results for the three months ending September 2023. And like the four other GAFAM companies before it, Apple reported its highest-ever third-quarter profit, though it fell short of expectations on the sales front, as it and other tech giants continue to bounce back from their post-pandemic slump.
The company’s September-quarter net sales fell 1% to $89.5 billion, but net income rose 11%. Apple shares, which had risen 37% this year, fell 3.4% in after-hours trading after the company’s quarterly guidance for the crucial holiday season was disappointing. The company said it expects the December quarter to be in line with 2022, but observers had been hoping for a growth forecast that beat last year.
Within the entire GAFAM group, namely Google, Apple, Facebook, Amazon and Microsoft, several companies have recovered from the post-COVID recession. During the pandemic, “Big Tech” benefited from the stimulating effect on online advertising, e-commerce and consumer spending. Alphabet and Microsoft saw slightly lower profits in 2022 compared to 2021, while Facebook saw its biggest decline for the year, with a net profit of just $4.4 billion in the September quarter, compared to $9.2 billion in 2021 and below the third quarter of 2019. During the quarter, the company broke its record for the third quarter due to the pandemic, making a profit of $11.6 billion.
Although Apple’s revenues increased significantly during the pandemic, it did not incur significant losses in 2022. In 2023, the company was able to become even more profitable. Meanwhile, Amazon’s profitability crisis began as early as 2021. The company’s revenues began to fluctuate significantly as new CEO Andy Jassy initiated cost-cutting measures, which ultimately led to revenue growth in 2023, most recently reaching $9.9 billion, a third-quarter record and the second-best result ever.
