Tech Majors Market Shares Q2 2018 A Tale of Mixed Fortunes

The 20,000 Foot View:             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.

Key Findings

• Facebook missed            Wall Street estimates and saw            wiped of its stock value,            Apple became the first trillion-dollar            cap company
• Tech majors’            revenue totalled            billion, down from            -            billion, but up            from            and            from            2016
• Apple’s revenue                       billion for calendar            2018, making            the company’s strongest ever            yet,            it a tech major market            of           
• Amazon’s revenue                       billion in            2018, up            from            in            2017 giving it a            share of           
• Alphabet’s revenue                       billion, up            on YoY from            giving it a market share                      
• Facebook revenue                       billion, up            YoY giving it            market share of           
• Tech majors’            and services revenue totalled            billion                       2018, up            YoY
• Advertising and            revenue growth is becoming a            larger share of revenue, growing            points, from            in            2016 to                       2018
• Services is            the junior partner, representing            of            advertising and services revenue in            but growing one point a            up from            in            2016
• In absolute            though, advertising is contributing most            adding            billion between            2016 and            compared to            billion for services
• Alphabet leads            major ad market share with            one point on            2018, followed            Facebook on            up one point            Amazon flat at           
• Apple leads            market share with            followed by            on            and Amazon up two            from            2018 to            in            2018
           2018 saw Apple’s strategic resets - increased iPhone prices, focus on services – bear fruit
• Amazon seems            to eclipse Apple as the            most valuable company in terms            market capital and revenue
• Facebook’s slowing            growth in mature markets means            needs to accelerate monetisation of            users, with messaging app strategy           

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.