November 2, 2016 | blog | by Alexian Chiavegato

Checking in on the Latest Quarterly Earnings Reports

In 2017, 75 percent of Internet use worldwide will take place on smartphones and tablets, according to a new study by Zenith. That number grows to 85 percent when we look at Spain alone. Mobile is no longer a modest part of our lives online, but the main platform we use to access the Web. The same can be said for some of the biggest tech companies. Mobile is a focus for Google. Apple has opened revenue streams through services like Apple News and the App Store that are driven by mobile devices. With new quarterly reports having come out in the past several weeks, now is a good time to take a look at how mobile is affecting these companies.

Alphabet, Google’s parent company, reported a 20 percent increase in revenue over last year, with mobile being a driver for the business. Ruth Porat, Alphabet’s CFO, went so far as to say that “mobile search and video are powering our core advertising business.” According to eMarketer, 59.5 percent of the company’s ad revenue this year will come from mobile, compared to 45.8 percent in 2015. Google has made sure that mobile is a priority, and it’s paying for the tech titan. Even other parts of their business that don’t directly draw revenue from the mobile Internet still are made with mobile advertising in mind. For example, Google has expanded its line of hardware this fall. The company introduced a house-made phone called the Pixel, and revealed an in-home personal assistant called Google Home. While the revenue from the hardware will be a new stream, it also helps “at enriching Google’s advertising targeting capabilities as consumers engage and share information,” says eMarketer senior forecasting analyst Martín Utreras. The more Google devices customers interact with, the better the search giant will be at providing targeted mobile ads.

While Google adds to its array of devices, Apple is seeing more and more revenue come in from services, like the App Store or Apple News, that depend on the use of mobile devices. Apple revealed in their last report that its services now bring in more money than Mac sales do. Tim Cook, Apple’s CEO, pointed out in the report that services grew 24 percent, setting a record for the company. Smartphones have reached a saturation point in the US, leading to a drop in phone sales from last year. In China, services were actually the lone bright spot, as phone sales dropped 30 percent. Producing advertising dollars from mobile phones is becoming even more important for a company that has made its mark by producing hardware such as the iPhone or iPad.

Amazon is another company enjoying a great contribution from online services. The company failed to meet its bottom line estimate, due in part to the investments it made into Amazon Web Services, among other endeavors. Analysts see that department being a driver of revenue for the foreseeable future. Amazon Web Services is a cloud-based computing service. It includes Amazon Cloudfront, a Content Delivery Network Service that allows Marfeel to bring its publishers HTTP/2.

Mobile keeps on seeping into every aspect of the tech industry today. Top companies continue to see good returns from mobile Web-based business models. Whether it’s through advertising channels like search, display, and video, or through Web services that bring a better user experience to consumers, mobile business keeps evolving, and it isn’t showing any signs of slowing down.