Tech firms flourish during lockdown

31 Jul 2020

Whilst many firms worldwide struggling during this challenging period, the world's biggest tech firms saw their sales soar, putting them on a different level than other businesses. 

Users on Facebook, Whatsapp and Instagram increased by 15% whereas Amazon sales were up by 40% throughout the April-June period. Similarly, Apple iPhones and their other hardware supported the firm’s steady rise in sales. 

However, on Wednesday, the tech firms were grilled by lawmakers questioning their size and power. Bosses of the four tech giants were asked about their dominance over other firms, which struggled during the coronavirus pandemic. In contrast, Amazon, Apple, Google and Facebook thrived during the period. 

Congressman David Cicilline, who leads the committee suggested that the tech firms will continue to outgrow and quash rivals in the remainder of the pandemic. 

"Prior to the coronavirus pandemic, these corporations already stood out as titans in our economy. In the wake of COVID-19, however, they are likely to emerge stronger and more powerful than ever before."

Amazon reported the biggest quarterly profit since the company's start in 1994, earning $5.2 billion. Moody's vice president Charlie O'Shea commented, "This is an exceptional quarter on all fronts under extreme circumstances.”

To add on, the online retailer hired around 175,000 people in the three months, and is seeking to grow more as it chief financial officer Brian Olsavsky noted, "We've run out of space.”

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