Tech Majors Market Shares Q1 2018 Advertising and Subscriptions Power Growth

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The 20,000 Foot View:  In        2018 advertising revenue and services revenue drove strong growth for the tech majors – Alphabet, Amazon, Apple, Facebook, with Alphabet and Apple retaining their respective leads in each of those revenue segments but losing market share. Subscriptions were also a big part of the        narrative; Amazon and Apple highlighted significant subscription growth underpinning their growing service businesses.

Key Findings

• Tech major        2018 revenues totalled        billion, up        from        2017 and        from        2016
• All four tech majors except Facebook grew faster in        2018 than they did        2017
• Apple has the largest market share        followed by Amazon        Alphabet        with Facebook the junior partner with just       
• Apple lost market share, dropping nine points across the two-year period, while Amazon gained five points, Facebook three points and Alphabet one point
• Tech major ad revenue totalled        billion in        2018, up        from        2017 – an acceleration on the        Y-o-Y growth registered in 2017
• Facebook ad revenues were up        YoY to reach        billion, giving it a tech major ad revenue market share of        up from        in        2016
• Alphabet’s tech major market share of ad revenues also fell from        in        2016 to        in        2018
• Amazon ad revenue grew        YoY in        2018 to reach        billion, giving it a tech major ad revenue market share of around       
• Apple is pivoting towards content and services against the backdrop of a maturing core business. Services revenues now account for        of group revenues
• In        2018 Apple’s Services revenue was        billion, a        increase YoY, giving it a leading tech major services market share of       
• Amazon recorded        billion services revenue in        2018, a        YoY increase and a third-placed tech major market share of        up from        in        2016
• Alphabet ranked second in terms of        2018 services revenue, with        billion, giving it a market share of        five points up from        in        2016

Companies and brands mentioned in this report:  Alphabet, Amazon, Apple, Facebook