Tuesday, June 6

Amazon loses ground due to slowdown in consumption and shortage problems | Economy


Workers at an Amazon station in Kent, Washington, in 2018.
Workers at an Amazon station in Kent, Washington, in 2018.LINDSEY WASSON (Reuters)

Amazon has reported this Thursday a balance of results in the third quarter of the year lower than the expectations of analysts and Wall Street, as a result of the slowdown in consumption after the expansion of spending at the end of last year and the beginning of this. The company has also warned that it expects additional cuts in revenue in the last quarter of the year, due to supply chain problems. The stock market has punished the results with a 4% decrease in the shares of the e-commerce giant in after-market operations, with a profit per share of 6.12 dollars compared to the almost 9 (8.92) initially expected .

The company’s revenues between July and September amounted to $ 110.81 billion, compared to a forecast of $ 111.6 billion, confirming the downward trend recorded in the previous quarter. Sales online increased 3% compared to the same period in 2020, while those made in physical stores took off 13%, to 4,270 million. This inverse trend, the return to face-to-face stores, is a novelty in the more than 18 months since the start of the pandemic.

For the fourth quarter, the busiest commercial activity of the year in the US, the company founded by Jeff Bezos expects growth of between 4% and 12%, with an operating profit of up to 3,000 million. Andy Jassy, ​​CEO, said Thursday that Amazon expects to bear “several billion dollars” of additional costs in the fourth quarter as a result of the labor shortage. The electronic giant plans to hire 300,000 people as a seasonal reinforcement, for the shopping season that runs from Thanksgiving to Christmas.

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Labor market adjustments and supply shortages, which make it difficult for retailers to replenish products and merchandise, seem to have had less influence on the results of Apple, which completed the round of quarterly results from the big tech companies on Thursday. The company has broken its own record, a remarkable feat if one takes into account that in the second quarter it achieved a year-on-year increase of 36%, thanks to its new iPhone model and services (music, television, application store, etc.) . The most popular device of the firm, its telephone terminal, has achieved an increase of 47% in revenues compared to the same period of 2020, with revenues between June and September of 38,868 million dollars. Regarding services, its business volume increased 12%, with 18,277 million. They are the two most successful divisions of Apple.

Despite the fact that the third quarter is the most powerful and the one that usually brings the greatest benefits to the firm, due to the presentation in September of the new iPhone, there are many unknowns that surround its performance this year, due to logistics and production problems internationally, aggravated in the case of technology by the shortage of semiconductors. Apple, however, has reinforced the manufacturing process to be able to cope with the Christmas sales season, according to their managers this Thursday.

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