Tech Majors Market Shares Q2 2018 A Tale of Mixed Fortunes
The 20,000 Foot 2018 delivered contrasting milestones for the tech majors with Apple becoming the first company to have a trillion-dollar market capitalisation while Facebook simultaneously saw the single biggest one-day loss in market capitalisation in the history of US stock exchanges. But, as is most often the case with spectacular one-off events, these were merely the manifestation of longer term trends that have been building across previous quarters.
- Facebook missed some Wall Street estimates and saw billion wiped of its stock value, while Apple became the first trillion-dollar market cap company
- Tech majors’ 2018 revenue totalled billion, down from 2018 - billion, but up from 2017 and from 2016
- Apple’s revenue was billion for calendar 2018, making it the company’s strongest ever yet, giving it a tech major market share of revenue was billion in 2018, up from billion in 2017 giving it a market share of revenue was billion, up on YoY from 2017, giving it a market share of revenue was billion, up YoY giving it a market share of majors’ advertising and services revenue totalled billion in 2018, up YoY
- Advertising and services revenue growth is becoming a progressively larger share of revenue, growing five points, from in 2016 to in 2018
- Services is still the junior partner, representing of combined advertising and services revenue in 2018, but growing one point a year up from in 2016
- In absolute terms though, advertising is contributing most growth, adding billion between 2016 and 2018 compared to billion for services
- Alphabet leads tech major ad market share with down one point on 2018, followed by Facebook on up one point and Amazon flat at leads services market share with followed by Alphabet on and Amazon up two points from 2018 to in 2018 saw Apple’s strategic resets - increased iPhone prices, focus on services – bear fruit
- Amazon seems primed to eclipse Apple as the world’s most valuable company in terms of market capital and revenue
- Facebook’s slowing DAU growth in mature markets means it needs to accelerate monetisation of existing users, with messaging app strategy key
Companies and brands mentioned in this report: Alphabet, Amazon, Amazon Prime, Azure, AWS, Apple, Apple Care, Apple Cloud Services, Apple Music, Apple Pay Calico, Dropbox, eBay, Facebook, Google, Google Play, Google Play Store, Google Ventures, Microsoft, Netflix, PayPal, Snapchat, Spotify, WeChat, Waymo, WhatsApp, YouTube, YouTube Music, YouTube Premium
Note: Throughout this report quarters refer to calendar year quarters.