Most companies have suffered severe financial setbacks following a season of disappointing earnings reported by US tech giants. Perhaps the biggest critic was Meta, the company that owns Facebook, Instagram, and WhatsApp. Its overall value fell by almost 20%, or $90 billion. iPhone maker Apple is the only company that seems to buck the trend. The company’s shares have risen 6% since announcing earnings late last week. A recent analysis by Business Insider put Apple on par with its three main competitors: Amazon, Meta, and Google’s parent company Alphabet.
According to a Business Insider report published on November 3, Alphabet ($1.126 trillion), Amazon ($940 billion), and Meta ($240 billion) have a combined market valuation similar to that of Apple, two 307 billion dollars (approximately Rs 190,000 billion). This shows how even the world’s largest technology companies are different and positioned differently within their industries.
It’s worth noting that Apple is bucking the downward trend in technology company valuations. Companies like Meta and Alphabet rely heavily on digital advertising and information technology services to increase their revenue. Amazon, on the other hand, relies on customer spending to drive growth.
Both retail and digital advertising declined in the September quarter. This is due to significant global headwinds from macro concerns affecting consumer and business spending. Tech giants that have operated in line with the above factors are suffering from decline.
On the other hand, Apple offers a wide range of products and services, and the debut of the new iPhones is seen as a key event for the September quarter. Strong sales this quarter show that demand for the company’s devices is high. But Apple’s global rise is largely due to its Mac line of laptops and desktops, not just the iPhone.
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