Amazon’s fourth quarter results built on COVID-19 ecommerce
US technology giant Amazon has delivered its largest ever quarterly revenue, totalling some $125.6bn.
The figure blew previous records out of the water, representing the first time the company has exceeded $100bn in a quarter. In the same quarter last year, its net sales were $87.4bn.
A pandemic shopping boom
Ecommerce has been one of the few sectors to benefit from the ongoing COVID-19 pandemic, as shoppers have been forced indoors. As the biggest ecommerce firm around, Amazon has ridden that wave - particularly over the “holiday season” - delivering more than one billion products to customers
In with investors, CFO Brian Oslavsky said: “Our Q4 results also largely reflect the continuation of demand trends we have seen since the early months of the pandemic, particularly as people are staying at home, including for household staples and other home products. We saw sales growth across major product categories led by strong prime member engagement.”
The company used the good news to soften the blow regarding the announcement that CEO and founder Jeff Bezos would be stepping down starting from the third quarter of 2021, and replaced by AWS CEO Andy Jassy. On that point, Orlavsky said: “And I will reiterate that Jeff is not leaving, he is getting a new job. He's going to be executive chair of the board. Super important role. The board is super active and important in Amazon's success story. And you know Andy has been here since 1997. He is not only a visionary leader, but he's also a strong operator."
Amazon beats Google on cloud front
Amazon’s AWS cloud business, for now led by Jassy, continued to go from strength to strength. Revenue climbed 28% compared to last year, reaching $12.7bn. Amazon’s fortunes contrasted with those of fellow cloud leader Google. The latter reported its cloud earnings for the first time. Despite growth, it was running at an operating loss of $5.61bn.
Ericsson: 5G will be fastest adopted mobile generation in hi
Ericsson’s June Mobility Report projects that nearly 600 million 5G subscriptions will be active by the end of 2021, making it the fastest adopted mobile generation in history.
The longer range forecast is for around 3.5 billion 5G subscriptions and 60 per cent 5G population coverage globally by the end of 2026.
China, the US, Korea, Japan and the GCC (Gulf states) will lead deployment, with Europe lagging behind. The latter got off to a slower start and has been mired in infrastructure battles over the provenance of hardware.
North East Asia is expected to lead 5G deployment with an estimated 1.4 billion subscriptions by 2026, while North America is expected to account for the highest 5G subscription penetration.
Key findings of the Ericsson Mobility Report, June 2021
5G remains on track to become the fastest adopted mobile generation in history with subscriptions increasing at a rate of about a million per day
China, North America and the Gulf Cooperation Council markets are leading the way on subscriber numbers, while Europe is off to a slow start
5G subscriptions with a 5G-capable device grew by 70 million during the first quarter of 2021 and are forecast to reach 580 million by the end of 2021
5G ready for 'advanced use cases'
Fredrik Jejdling, executive vice president and head of networks, Ericsson, said, “We are in the next phase of 5G, with accelerating roll-outs and coverage expansion in pioneer markets such as China, the USA and South Korea. Now is the time for advanced use cases to start materialising and deliver on the promise of 5G. Businesses and societies are also preparing for a post-pandemic world, with 5G-powered digitalization playing a critical role.”
Photo credit: Ericsson