Tech Majors Market Shares Q2 2018 A Tale of Mixed Fortunes
The 20,000 Foot XXX 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 XXX billion wiped of its stock value, while Apple became the first trillion-dollar market cap company
- Tech majors’ XXX 2018 revenue totalled XXX billion, down from XXX 2018 - XXX billion, but up XXX from XXX 2017 and XXX from XXX 2016
- Apple’s revenue was XXX billion for calendar XXX 2018, making it the company’s strongest ever XXX yet, giving it a tech major market share of XXX revenue was XXX billion in XXX 2018, up XXX from XXX billion in XXX 2017 giving it a market share of XXX revenue was XXX billion, up XXX on YoY from XXX 2017, giving it a market share of XXX revenue was XXX billion, up XXX YoY giving it a market share of XXX majors’ advertising and services revenue totalled XXX billion in XXX 2018, up XXX YoY
- Advertising and services revenue growth is becoming a progressively larger share of revenue, growing five points, from XXX in XXX 2016 to XXX in XXX 2018
- Services is still the junior partner, representing XXX of combined advertising and services revenue in XXX 2018, but growing one point a year up from XXX in XXX 2016
- In absolute terms though, advertising is contributing most growth, adding XXX billion between XXX 2016 and XXX 2018 compared to XXX billion for services
- Alphabet leads tech major ad market share with XXX down one point on XXX 2018, followed by Facebook on XXX up one point and Amazon flat at XXX leads services market share with XXX followed by Alphabet on XXX and Amazon up two points from XXX 2018 to XXX in XXX XXX 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.