How Big Tech Companies Are Earning Billions To Beat The Economy of Whole Countries

If we look at the world’s most successful companies in this day and age then all of them belong to the tech industry. Four out of the top five have even have crossed the trillion-dollar market capitalization mark.

However, with all the similarities, if we consider all top five technology companies (Amazon, Facebook, Apple, Microsoft, and Alphabet) they all show different cashflow backgrounds and even have different growth trajectories. Some of them offer a mixed range of applications & cloud services, products and also data accumulation while others have their focus set on singular services. But if we look at the overall value of these companies then they definitely beat all the big oil and other major industry groups around the world to become the best publicly-traded companies of all times now. And while that is not all, these companies will also continue to grow to break NASDAQ records and even make their founders billionaires as well.

At times growth also comes with difficulty and these companies have faced the issues of data usage, diversity and treatment of workers on a global level but not a single thing either coming from the government or people has been able to impact the immense growth that these companies have enjoyed over the years.

How Revenues For Big Tech Companies Have Increased

If we are to be precise in the answer then the urge for greater technological adoption has been the key behind all the big numbers of revenue.

Today, Amazon is leading the competition in revenue figures by beating its last year’s figures as the set target. The company has experienced immense leaps in all of its operations, all due to COVID-19. The revenue coming from online sales and other third-party seller services has jumped up by $30 billion, whereas Amazon Web Services and Amazon Prime together also gave an incline of $15 billion in the total revenue figure.

The only segment of the business in which Amazon didn’t excel was sales at physical stores, which previously turned out to be the fastest-growing segment of the business last year.

Furthermore, services and ads have been a hit with other competitor tech companies as well. Alphabet’s ad revenues with the help of Google properties and networks grew up by $20 billion and finally, Google Cloud also saw a growth of $8.9 billion revenue addition to the segment.

Microsoft too enjoyed its share of growth because of cloud computing and services bringing stronger revenues for the company in almost all of its segments. Moreover, people have started to prefer Azure services more than Office or Windows, which has made Azure grab the largest share of revenue for the company as well.

Facebook on the other hand with slightly less service-based offers and more ad integration features first become successful in boosting up the average revenue per user number and then also earned an additional revenue of $20 billion altogether.

Let’s Compare The Tech Giants

Apple has been the only company this time around that couldn’t manage to hit big numbers in revenue as compared to its previous years' performances. iPhone business dropped by $25 billion but that was somehow offset by a $10 billion increase in revenue of services and then more $3 billion coming from iPad sales.

But despite the losses, Apple still leads the list with $55.2 Billion when you compare it with other big tech companies in case of net income and market capitalization.

Stats Bigger Than The Numbers of Whole Countries

If you carefully look at the revenue numbers (which in 2019 were $900 billion) then these companies stand greater than the GDPs of the top 4 G20 countries. Even if we are to consider Big Tech’s earnings as that of a country then it would stand 18th in the list of largest countries by GDP, way above Saudi Arabia and just slightly below The Netherlands.

With technology evolving every passing day, more users getting comfortable with the digital services offered by these companies, how much more will the Big Tech companies grow and earn in the world?

Only time will tell that!



Infographic source: Visualcapitalist.

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