According to The Wall Street Journal (WSJ), the total income of the five leading IT corporations surged to $1.1 trillion. Experts attribute a jump in revenue to an increase in the number of hours spent on the Internet due to quarantine restrictions against the background of COVID-19, as well as a rise in the number of online purchases. The remote-work era has also been a boon for IT companies.
WSJ experts found out the top 5 global IT giants - Apple, Microsoft, Amazon, Alphabet (a subsidiary of Google), and Facebook notched strong results in 2020 underpinned by pandemic-fueled demand. As a result, the total revenue of these companies soared by a fifth to $1.1 trillion, and the net income skyrocketed by 24%. The combined market capitalization of the world's electronics leaders came in at $8 trillion, up by 50%.
Apple's revenue grew on the back of higher demand for laptops, tablets, and other devices. The gadgets were sold like hot cakes as people bought devices to facilitate working from home and distance learning. Apart from the well-known products, Apple offered users new iPhone models. The revenue from their sales accounted for the lion's share of the company's annual profit.
Microsoft's sales advanced considerably as the epidemiological situation was escalating across the globe. People had to adapt to remote work and the limitations associated with COVID-19. Therefore, Microsoft products devised for online cooperation and text chats were among the sought-after ones. The IT giant also extended gains due to the sale of Xbox game consoles, Surface laptops, and cloud services.
Amazon, the largest US retail company, benefited from the pandemic as the popularity of e-commerce services rose dramatically. Last year, its revenue increased by 38% to $386 billion. People were forced to stay at home and many shops were closed. So, they had to buy things via the Internet. Amazon as a market leader managed to provide high-quality services, namely by offering different products with the fastest delivery. Amazon cemented its leadership in the global market thanks to lockdown restrictions. If the company sustains its dazzling rally, its market cap will exceed Walmart, one of the largest corporations in the United States.
For Google, the year 2020 also turned out to be fruitful. As people were spending lots of money on online shopping, Google also showed remarkable financial results, especially by the end of 2020.
Facebook was also in the black thanks to the pandemic. Due to the quarantine restrictions, people spent more time at home, so the company offered users new features, such as shopping on Instagram. Amid the e-commerce boom, Facebook’s revenue rose markedly. The company does not rule out expanding the list of new products, the WSJ notes.
