Earnings season is in full swing and the top tech companies are posting stellar results. 📈
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Kimberly P. Mitchell-Detroit Free Press/Design: John Regula
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Apple posted record revenue ever for a quarter ending in June, as the tech giant edges further into fitness and media.
The largest company in the world by market capitalization, with $2.44 trillion, posted fiscal Q3 revenues of $81.4 billion, a 36% increase from the same period last year.
The growth was spread across multiple key divisions.
- iPhone sales surged 49.8% YoY to $39.6 billion.
- Services — which includes Apple TV+, Apple Music, and Apple Arcade — jumped 32.9% YoY to $17.5 billion.
- Wearables, Home & Accessories grew 36% YoY to $8.78 billion for the quarter. The growth boosts the potential market for Apple Fitness+, which integrates with biodata collected by the Apple Watch.
The fresh infusion of iPhones, Macs (sales up 16%), and iPads (sales up 12%) could bring new customers to Apple Arcade, the company’s subscription gaming service.
Apple TV+, which scored a big hit with its soccer coach-focused comedy “Ted Lasso,” may be making a move into live sports. Last year, the company hired James DeLorenzo, who previously led Amazon’s sports efforts.
The streaming service is reportedly in the running for rights to NFL Sunday Ticket.
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Microsoft released its fourth-quarter earnings Tuesday, recording revenue of $46.15 billion, nearly $2 billion more than analyst estimates, and a 21% increase from Q3.
Despite ongoing chip shortages worldwide, Xbox hardware revenue increased 172% during the quarter with help from the Xbox Series X and Series S.
Overall gaming revenue increased 11% year-over-year to $3.7 billion, thanks in part to Microsoft’s acquisitions and Xbox Game Pass.
- Microsoft recently completed its $7.5 billion acquisition of ZeniMax — Bethesda’s parent company. Bethesda is the publisher behind “Fallout” and “The Elder Scrolls” and is bringing “Starfield” and “Redfall” exclusively to Xbox in 2022.
- Game Pass is offered for $9.99 or $14.99 per month and includes 23 million subscribers who spend 50% more on content than non-subscribers.
Though Microsoft doesn’t release the number of units sold, the Xbox Series X and Series S were the highest-grossing consoles last month in dollar sales, per the NPD Group.
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Supernatural/Design: Alex Brooks
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When it comes to tech-enabled fitness, two of the world’s largest companies may form an unlikely alliance.
Facebook is considering integrating its Oculus VR technology with Apple’s Health app, according to Bloomberg, following iOS developer Steve Moser’s discovery of code that allows users to view health data collected by an Oculus on the iPhone app.
Apple and Facebook, the respective largest and sixth-largest companies in the world by market capitalization, have both made strides into fitness.
- Facebook’s Oculus Move program collects workout-related data across multiple apps for its VR headsets.
- Apple launched Apple Fitness+ in December. The paid subscription program offers workout classes and integrations with the iPhone and Apple Watch.
- The Apple Watch can track heart rate, electrocardiogram signals, blood oxygen levels, and movement activity. The company is also developing non-invasive blood glucose monitoring technology.
- Apple CEO Tim Cook said in February that he believes health and wellness will be Apple’s greatest legacy.
While the code found within Oculus’ programming indicates that Facebook may want to leverage the strengths of its own technology and Apple’s, an official confirmation remains to be seen.
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Alphabet, the parent company of Google, exceeded expectations with its latest earnings report Tuesday.
The conglomerate reported $61.9 billion in revenue for Q2 2021, a 62% increase compared to the same period a year prior.
Alphabet — the fifth-most valuable company in the world with a market capitalization of $1.79 trillion — soared pass the Wall Street analyst estimates that forecasted closer to $56 billion.
Google continues to branch out and diversify by establishing a footprint in fitness and sports.
- Earlier this year, it completed its acquisition of Fitbit in a deal reportedly worth $2.1 billion. First announced in 2019, the deal was pending approval by the European Commission.
- It agreed to a three-year partnership in May with the WNBA and ESPN, joining Nike, Deloitte, and AT&T on an initiative focused on bringing viewers to women’s sports.
The strong quarter was driven by “elevated consumer online activity” and advertising revenue, which is rebounding after being hampered by the pandemic.
Total Google ad revenue reached $50.44 billion, up 69% year-over-year.
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- U.S. Olympians and Paralympians who win Tokyo medals will avoid paying federal income taxes on medal bonuses unless their gross income exceeds $1 million.
- Luxury activewear brand Moncler reported $236 million in revenue for Q2 2021, a 118% increase year-over-year.
- NBA stars Chris Paul and Kevin Love have invested in sports card trading platform Dibbs.
- Luka Dončić scored 48 points in Slovenia’s 118-100 victory over Argentina in his Olympic debut, which tied for second-most in Olympic history behind Brazilian Oscar Schmidt’s 55 in 1988. Get more stories like this in the The Association, a free NBA newsletter. Click here to subscribe.
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Tuesday’s Answer
26% of respondents plan on purchasing a new TV in the next six months; 23% of respondents said they might; 51% do not plan to.
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*All times are EST unless otherwise noted. *Odds/lines subject to change. T&Cs apply. See draftkings.com/sportsbook for details. |
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