Apple, which ranks first in market capitalization, exceeded Wall Street’s expectations in the second quarter. Despite these figures, the U.S. gross national product (GDP) recorded negative growth for consecutive quarters, effectively entering a “technical economic downturn.”
The U.S. government says it cannot be seen as an official economic downturn, but experts believe that the economic downturn that touches the public’s death will worsen.
Apple announced on the 28th (local time) that its net profit in the second quarter of this year was $19.4 billion, down 10.6% from the same period last year. However, Apple’s sales rose 1.87% to $83 billion, the highest ever in the second quarter. Both Apple sales and net profit exceeded Wall Street’s consensus (average earnings forecast).
On the other hand, the rest of the big tech companies have come to accept poor grades. Amazon, the world’s largest e-commerce company, recorded two consecutive quarters of operating losses in the second quarter. Microsoft and Facebook’s parent company Meta also performed below their earnings forecasts.
The U.S. economy also posted negative results. The U.S. GDP grew negative for the first and second consecutive quarters. Although no official economic downturn has been determined, adverse GDP growth for two consecutive quarters is technically regarded as a recession.
According to foreign media such as the WSJ and the British Guardian, the U.S. Department of Commerce announced that the U.S. GDP growth rate in the second quarter fell 0.9 percent annually. After recording -1.6% in the first quarter, it continued to show negative growth.
Economists feared that the Fed’s 0.75 percentage point rate hike and further hikes could encourage a faster economic slowdown for the second consecutive month. In response, he advised that the economic downturn could be avoided if the Fed puts a brake on the pace of interest rate hikes before it takes a heavy toll on employment and spending.
