Tech giants grows by 35% in 2021 inspite of COVID
The coronavirus health catastrophe has probably benefited technology behemoths the most. While other industries are in recovery mode, technology firms are thriving and making large profits.
According to Finbold statistics, the top five tech behemoths experienced 35.4% average revenue increase between the first three quarters of 2020 and the same period in 2021. Amazon revenue is expected to reach $332.4 billion in 2021, a 27% increase from the $260.5 billion recorded in the first nine months of last year.
Alphabet experienced the greatest revenue growth, increasing by 45% from $125.6 billion to $182.3 billion. Similarly, Meta, previously Facebook, saw a 45% increase in value from $57.9 billion to $84.2 billion.
Apple experienced sales growth of 39%, while Microsoft experienced revenue growth of 21%. The corporations have made a total of $986.5 billion in revenue. Data on the revenues of technology companies is gathered from their quarterly reports.
The companies' revenue rise stems from their particular role in the midst of the pandemic. The companies' goods provided consumers with a way to manage the health crisis, which was marked by widespread lockdowns. Most of the companies have been growing over the last decade, but the novelty of the pandemic has given them a push.
Surprisingly, it was thought that the reopening of the economy would reduce company sales as more individuals spent time away from home and their devices. The revenues, on the other hand, may imply that the enterprises have successfully worked up new plans to build on the gains earned during the health crisis, making them vital components of professional and personal life.
The corporations also used their access to introduce new product lines provided through their platforms. Amazon, for example, just announced the release of new products to expand its home environment, while Apple is increasingly expanding into the service industry.
Furthermore, the companies' ability to capitalise on upcoming technologies such as 5G and cloud computing has resulted in an increase in revenue. During the lockdowns, for example, cloud computer systems run by Amazon, Microsoft, and Google were heavily used for remote working, learning, and entertainment. In other news, with the release of Apple's 5G phone models, the company stands to profit from the $60 billion that Americans are expected to spend on phones that support the technology.
Surprisingly, income has increased despite the companies' difficulties in promoting their main products. The global technology industry has been impacted by supply chain bottlenecks for semiconductors over the last year. The shortfall caused a halt in the production of computers and phones. Microsoft, for example, initially stated that the limits would damage its Surface and Windows products.
It is worth mentioning that the highlighted companies generate revenue in a variety of methods. However, the large number reported has resulted in criticism of their market influence in recent years. As a result, government regulators are questioning whether they have become too powerful.
The market monopoly dispute led in US President Joe Biden signing an executive order to promote more competition. The order places a greater emphasis on assessing mergers and acquisitions in the technology industry. One of the primary concerns is the collecting of data. The internet titans are accused of amassing an excessive amount of personal information, which is then exploited to damage smaller competitors.
Our recent study raised concerns about the sector's data violations, revealing that EU GDPR fines for 2021 Q3 totaled €984.47 million, about 20 times greater than cumulative fines of €50.26 million levied in Q1 and Q2. Notably, Amazon EuropeCore S.à.r.l was fined the most, €746 million, followed by WhatsApp Ireland Ltd, which was fined €225 million.