Latest / THE DAILY BRIEF / Apple claims 'tremendous' global uptake of latest iPhones

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Apple claims 'tremendous' global uptake of latest iPhones · THE DAILY BRIEF

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  Speaker 1: Hello and live from London. This is business today. I'm
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  Speaker 1: the quest of Burak. Big tech just keeps getting bigger.
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  Speaker 1: Two of the giants of the industry, that is, Amazon
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  Speaker 1: and Apple have reported bumper earnings as the AI boom
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  Speaker 1: shows no sign of slowing down. Amazon's cloud business reported
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  Speaker 1: its strongest quarterly growth in nearly three years amid growing
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  Speaker 1: demand for computing power linked to AI. Amazon Web Services,
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  Speaker 1: that's the e commerce giant's cloud computing division reported a
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  Speaker 1: twenty percent surge in sales to thirty three billion dollars.
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  Speaker 1: Will that sent shares in Amazon soaring by around thirteen
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  Speaker 1: percent in after hours trading. Let's take a look at Apple. Well.
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  Speaker 1: They reported revenue for the fourth quarter at over one
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  Speaker 1: hundred billion dollars, and that figure amounts to an eight
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  Speaker 1: percent increase from the previous year. Apple's boss Tom Cook
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  Speaker 1: said the latest iPhone models have I've seen a tremendous
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  Speaker 1: response wise words across the globe and expects the upcoming
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  Speaker 1: Christmas and Years period to be a blockbuster. From New York,
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  Speaker 1: here's Aaron Delmore.
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  Speaker 2: It's a big week for tech earnings, and let's start
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  Speaker 2: with Amazon's big day. The company's earnings beat analyst estimates. Now,
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  Speaker 2: one of the firm's major strengths is its cloud growth.
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  Speaker 2: Its cloud computing platform, called Amazon Web Services or AWS
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  Speaker 2: salts revenue accelerate more than twenty percent to thirty three
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  Speaker 2: billion dollars. The firm's CEO said that was a pace
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  Speaker 2: unseen since twenty twenty two. You might remember that AWS
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  Speaker 2: was in the spotlight this month after an outage disrupted
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  Speaker 2: businesses worldwide. It kept consumers from accessing major websites and apps,
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  Speaker 2: everything from sending digital payments to posting on social media
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  Speaker 2: to changing plane tickets. The cloud business is also facing
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  Speaker 2: fierce competition from tech rivals like Google and Microsoft. Amazon
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  Speaker 2: also announced cuts to some fourteen thousand corporate jobs just
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  Speaker 2: this week, but overall third quarter earnings made for a
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  Speaker 2: strong showing for Amazon, which has fared the least well
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  Speaker 2: this year compared to the other major seven tech stocs. Meanwhile,
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  Speaker 2: Apple reported its own quarterly results and beat expectations. Iphoned
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  Speaker 2: revenues though missed expectations, but sales were still up six
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  Speaker 2: percent compared to a year prior. The firm's been under
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  Speaker 2: pressure from President Trump's tariffs on China that strained manufacturing
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  Speaker 2: and production. This is the end of Apple's fiscal year
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  Speaker 2: and a real star in its earnings was its services
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  Speaker 2: division that includes Apple Music and Apple TV, and it's
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  Speaker 2: been acting as a real growth engine for the company
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  Speaker 2: despite legal and regulatory hurdles. The firm also teased some
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  Speaker 2: AI partnerships to come, and that was Aaron Delmore.
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  Speaker 1: Let's discuss this further with the independent financial markets commentator
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  Speaker 1: Susanna's streeter Susanna looking at so those Apple figures. First off,
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  Speaker 1: I mean they've compared sales of the latest seventeen to
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  Speaker 1: the Model sixteen last year and doing remarkably well. Yeah.
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  Speaker 3: Interesting these results because Apple has been a bit of
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  Speaker 3: a laggard in the Magnificent seven pack of tech jugs
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  Speaker 3: this year, but this tort to us is catching up
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  Speaker 3: because of this demand that was described by Tim Cook,
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  Speaker 3: the CEO, as off the chart. So they also show
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  Speaker 3: that Apple really does still have big brand pulling power
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  Speaker 3: and now the real race is are on two fulfilled
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  Speaker 3: customer orders for its latest handsets, including the Ultra Thin
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  Speaker 3: Air and the new editions of the iPhone seventeen. So
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  Speaker 3: what really did infuse investors was that forecasts four, the
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  Speaker 3: crucial holiday season be expectations with a growth estimated between
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  Speaker 3: ten and twelve percent. Now, there are still some hiccups
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  Speaker 3: of problems in terms of supply constraints to deal with
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  Speaker 3: and actually meeting all of this demand, but certainly if
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  Speaker 3: you look at where the share price went and after
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  Speaker 3: hours trading, it certainly shows though Apple really is doing
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  Speaker 3: what it hasn't done so far this year.
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  Speaker 1: Turning our attention to Amazon, some of these earnings have
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  Speaker 1: been reported as unexpected. Tell us more about that.
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  Speaker 3: Yes, I think what you're seeing really with Amazon is
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  Speaker 3: that it's putting off what it's big tech rivals are
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  Speaker 3: still only aiming for, so achieving return on investment from
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  Speaker 3: its huge AI spend. Because there's been a lot of
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  Speaker 3: questions raised about whether this high watering capital expenditure that
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  Speaker 3: we're seeing is really justified, and that's been unsettling investors.
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  Speaker 3: You look at what happened to Meta share price earlier
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  Speaker 3: in the week, but AWS, so the Amazon's mega cloud
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  Speaker 3: computing business is already reaping big rewards from all that
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  Speaker 3: money it's put into because of this huge demand for
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  Speaker 3: computational power and the kind of infrastructure backbone that the
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  Speaker 3: AI revolution needs. Because AWS sales surged by twenty percent,
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  Speaker 3: and that was unexpected. So it's aiming and achieving to
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  Speaker 3: do what it's rivals, or so far not quite they're
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  Speaker 3: not quite there yet.
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  Speaker 1: O then, Streeter, thank you very much for that.