The five technological giants earn 56% more in 2021 boosted by the covid

February 5, 2022

Madrid, Feb 5 (EFECOM) .- The five large international technology companies earned, as a whole, 279,560 million euros in 2021, 55.6% more than in 2020, pushed by the change in habits caused by the covid pandemic and despite the semiconductor crisis and supply problems. According to data compiled by Efe, Amazon, Meta (parent company of Facebook, Instagram and WhatsApp), Alphabet (parent company of Google), Apple and Microsoft achieved a net profit of 279,560 million in 2021. The profits of these companies increased by 55.6 % with respect to the 179,660 million of 2020, a year in which, unlike other large sectors, the profits of US technology companies grew thanks to the changes in habits caused by the coronavirus pandemic, such as the increase in teleworking or the online shopping. In 2021, the good results of the technology companies were marked, especially, by Alphabet, which almost doubled its profit, going from 35,120 million in 2020 to 66,320 million in the following year. It is followed by Amazon, with an annual growth of 56.4% and Apple, which increased by 57.3% and became the company that obtained the most profits of the five (87.7 billion). At the opposite extreme, Meta stood in 2021 as the company whose profit grew the least (35.1% to 34,340 million), while Amazon was the one with the least profit, 29,110 million. As a whole, these five large international technology companies exceeded the barrier of one billion euros in income in 2021, with 1.23 billion, 27.8% more than in 2020, when they invoiced 961,130 million. By companies, Alphabet was the company whose revenue grew the most, 41.1%, followed by Meta (37.2%). However, Amazon was the company with the highest turnover, thanks to the fact that it reached 409,880 million in 2021, 21.7% more than in 2020. By contrast, Microsoft’s turnover only increased by 20.6%, until 161,270 million, while Meta was the one with the least income in total terms obtained in 2021, with 102,860 million. CLICK GOAL IN THE LAST QUARTER The profits of the five big technology companies increased by 26.6% in the last quarter of the year compared to the same period of 2020, to 86,010 million, marked by the great growth of Amazon, which doubled its figures compared to the previous year, up to 12,470 million. After her, Alphabet experienced a profit increase of 35.5%, Microsoft’s profits grew 21.3% and Apple’s, 20.4%. The last quarter of the year saw Meta as the big loser. The company obtained a profit of 8,970 million between October and December 2021, 8.4% less than in the same period of 2020. A negative balance that came in a quarter marked by the blackout it suffered on October 4, due to in which all its services were deleted from the internet for more than six hours, and after a year in which it was marred by numerous controversies as a result of the leak of thousands of internal documents. To this must be added the poor forecasts that the company has made for 2022, recognizing that it faces serious challenges that could affect its profits in the future, such as the implementation of more restrictive privacy measures on iPhones, the high inflation and problems in the global supply chain. All this caused the company’s shares to fall up to 22% during the afternoon of last Wednesday, the day on which it presented its results, and that, since then, they have lost up to 35% of their value. ALPHABET, THE BIG WINNER OF THE YEAR Alphabet emerged in 2021 as the company whose profits grew the most, 88.8% thanks to the increase in advertising revenue, which accounted for 80% of its total sales. Within this segment, the turnover derived from the ads through Google were the highest. In the case of Apple, its year was marked by the sales of the iPhone 13, whose launch took place last September. Specifically, revenue from this model accounted for more than half of the company’s total turnover. For its part, Amazon recorded a strong increase due to the boost in online commerce, to which was added the increase in revenue from its cloud computing platform Amazon Web Services (AWS), the leader in the sector, while Microsoft has set its objective in video games, after announcing its intention to buy Activision Blizzard for 59.9 billion. The big international technology companies have increased their profit despite the crisis of semiconductors in the whole world and the supply problems derived from the lack of containers in China. Mari Navas