Alarm is the world’s largest technology companies, Amazon And Apple, due to intense geopolitical developments and economic uncertainty, since commercial policies and duties which have been imposed – in the context of Donald Trump’s policies – are beginning to leave their imprint.
All of these factors were cited by Amazon.com when it issued late Thursday (1.5.2025) the prediction that its profits would drop billions of dollars below Wall Street’s expectations. “None of us knows exactly where the duties will be settled or when,” said Managing Director Andy Jassy and how her future results are “inherently unpredictable”.
The quarterly profits of both Amazon and Apple have put in full display how US President Donald Trump’s trade wars threaten the results of even major technology companies – at least those active in the sale of natural things.
The iPhone manufacturer warned investors yesterday that duties would increase its cost by $ 900 million in this quarter. In a possible prediction of what is going to follow:
Apple’s sales in China – where Trump has focused on much of his trade war – did not meet investor expectations. It was a completely different message from what other large technology companies sent earlier this week to their profits. The results of Microsoft, Meta Platforms and Alphabet have shown that, for the time being, they are business as usual when selling digital goods such as software ads and cloud computing services.
The big difference, of course, is that import taxes do not apply to Microsoft Word facilities or YouTube ads in the same way that apply to a new coffee shop purchased by Amazon. In addition, the main customers for software and cloud computing are businesses that are not as quick as consumers.
Businesses make buying decisions farther in the future and are less subject to changes in vibrations. Today’s budgets were probably allocated six months ago.
THEI shares of Amazon scored 1% in New York today (2.5.2025). Apple fell 5%. The company gets “full grade for transparency and durability, but macroeconomic adverse winds and duties lead to a moderate decrease in profit estimates,” said JPMorgan Samik Chatterjee analyst, even if the company utilizes its “global construction” impact.
However, the relative security that companies seem to be like Google may not last long. Even companies selling digital goods are subject to duties in the form of equipment and infrastructure they need to buy to support their own businesses. And the deterioration of economic conditions threatens to influence their customers.
OR Meta He said he would spend billions more on data center infrastructure this year than previously expected, partly due to increased material costs for the operation of these centers.
OR Microsoft raised prices on Xbox game consoles yesterday, citing higher growth costs. It may just take more time to get financial disorders to business -oriented suppliers. If the cost is increased for companies across America, they will have less cash to buy, for example, Facebook ads.
International Business Machines warned investors last month that financial uncertainty can make its customers stop buying. Meta and Microsoft have added warnings to their financial reports this year on the possible impact of changes in commercial policy.
“Changes in global commercial policies, such as restrictions on international trade, including tariffs and other import or export controls, could lead to increased challenges in the supply chain, cost instability and uncertainty for consumers and the economy,” Microsoft said. These “can negatively affect the results of our activities”.