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Apple’s Services, Amazon’s AWS both see growth in Q2 2020

However, AWS's revenue failed to meet analysts' expectations

Both Apple and Amazon reported growth in their media-related businesses during Q2 reports.

Apple said its Services division (Apple Music, Apple TV+ and other software) grew its net sales to $13.2 billion during April to June 2020. That represents a nearly 15 per cent growth rate compared with the same period in 2019.

Company-wide, Apple reported revenues of $59.7 billion and earnings of $2.61 per share. That’s more than analysts were expecting.

On a call with investors, Apple CEO Tim Cook revealed the company had met his goal of doubling services revenue six months ahead of schedule.

However, he didn’t reveal how influential the Apple TV Plus had been in the figures, telling analysts that video and music had all-time record revenue without giving specifics.

Meanwhile, Amazon’s Cloud division AWS grew its revenue by 29 per cent year-on-year, but the quarter didn’t match analysts’ expectations.

AWS revenue reached $10.81 billion in Q2, less than the $11.02 billion expected by analysts.

Amazon said AWS in North America grew 43 per cent on an annualised basis, while the international business grew by 38 per cent.