Which companies are making the most money from data centers?
Posted On July 10, 2021
Apple has been making huge profits from data center operations, but its revenue growth has been slowing down.
The company has seen a $9 billion loss for the fourth quarter, which it attributed to a $4.5 billion loss in revenue for the quarter before that.
The losses are part of a broader data center slowdown that has been ongoing for years, but the latest figures are the first to indicate the impact.
Apple reported revenue of $10.2 billion for the three months ended June 30, down 6 percent from the same quarter a year ago.
The loss came on the heels of $5.6 billion in revenue that it posted a year earlier.
Apple was the fourth-largest contributor to data center revenues in the fourth, according to a report released Tuesday by consulting firm Deloitte.
In the quarter, Apple recorded $6.2 million in revenue from data and cloud services, a 14 percent decline from the third quarter, but it’s the lowest figure for a quarter in more than 20 years.
Apple also reported revenue in the quarter of $1.8 billion, down 12 percent from a year before.
In fact, Apple’s share of the data center market fell to 9.7 percent from 10.1 percent in the third.
While Apple’s revenue from the company’s data centers has dropped significantly, the company has also been making a lot of money from other parts of its operations.
In 2017, the firm posted a $2.2-billion profit from its cloud and cloud-as-a-service business.
Its cloud services business grew by nearly $2 billion to $4 billion in 2018.
The report does not include Apple’s profit from other companies, though Deloiseits numbers show that the company earned $6 million in 2017 from other firms, including IBM, Microsoft, Cisco, Cisco Systems, and Oracle.
Deloittts revenue numbers don’t include a portion of Apple’s business in China, where the company still operates a data center in Hangzhou, a city on the southern coast of China.
That business, which is largely controlled by Apple, is not included in the company-sourced profits.
Apple said in a statement Tuesday that it plans to reduce its data center footprint, which includes some of the world’s largest internet companies, and will focus on its cloud services and cloud computing.
The statement said that Apple is also making progress in the race to develop and launch more cloud-powered services, including cloud-based services from Google and Amazon, and is developing new cloud services to compete with Microsoft and other cloud providers.