After looking at the defensive characteristics of technology that made a good bet during a pandemic, many investors looked for a completely “open” business this year, gradually gaining out of control. I did. Finally, it was revealed that they should not look far.
This week’s revenue report from the largest technology company in the United States went beyond blocking new devices and digital services. With the help of executives, the sense of technology is almost triumphant. Announce that it represents lasting change.
But after the first half of this year, growth has slowed since the ban. The growing digital economy may be one of the consequences of an epidemic, but the effects are not the same. There are post-epidemic adjustments to explore.
First of all, the close-knit background of the high-tech boom in the first half of this year does not mean that it will follow in the second half. Apple expects chip shortages are hitting iPhone manufacturers around the world this quarter. Meanwhile, Facebook has been hit hard by Apple’s privacy breach.
Even in such cases, it is more difficult to compare.
Apple’s iPhone business is in full swing. In 2019 and 2020, that revenue increased by only 3% overall, but analysts predict that by 2021, revenue will increase by $ 80 billion, or 29%. In contrast, growth is expected to fall again to 4% next year. Selling music and TV to gadget owners may have provided a more consistent source of revenue, but this eliminates significant hardware fluctuations and allows investors to move on to the next iPhone cycle. You cannot protect yourself from worrying about meeting your expectations.
Digital advertising is also on the roller coaster. According to Magna, IPG Media Research arm, after a 2.5% reduction last year, this year’s global advertising could gain 14%. Almost all of that growth is digitally flowing, with Wall Street Google and Facebook expecting growth of 30% and 35%, respectively, and a huge disproportionate share. As the epidemic subsides, growth will stabilize later this year.
Against this background, there are two broad doubts as to when life came to a standstill. One is how powerful digital experiences many consumers have learned during the ban.
While it is true that technology incentives say there is a constant change, at least some of the behaviors that forced consumers and employees to change last year may change. Stream TV and video conferencing are two of the most obvious services designed for dragging. The NS harvest is a two-way street for Netflix viewers in the US and Canada, and new markets such as call centers.
But the plague was a gift to the technology industry. Persuading consumers to change their habits is often the most difficult part of building a new technology services market, so there was no point in forcing adoption. Where digital services offer speed, convenience and more options, new experiences can continue.
Another big question is whether the increase in the company’s technology costs represents a fall in IT demand in the future. If customers receive new technology a year or two earlier than planned, does that mean they spend less time now? An Silicon Valley investor suggested that this could disrupt the initial financial model used by start-up capitalists.
However, despite these doubts, the basic background of the technology is strong enough to survive the epidemic.
This week’s forecast growth will be normalized after a temporary increase in consumer demand for technology, according to Microsoft CEO Satya Nadela. However, he acknowledged that in the aftermath of the epidemic, all companies needed to improve their business in the future. If so, technological advancement must do more.
After the outbreak, the Big Tech test connects the Big Tech test after the outbreak