Silicon Valley will bounce back strongly from recession

The New York Times analyzed the correlation between Wall Street’s panic and the relative calm of Silicon Valley giants like Apple, Amazon, Microsoft, Alphabet and Meta. For example, market analysts predict all will increase hiring, buy more businesses and become more powerful in the following years. Reserve enough cash for them to “shop” comfortably.

Apple CEO Tim Cook has long had a habit of investing in the future in the midst of an economic downturn. During the Great Recession, for example, Apple doubled its employees and nearly tripled sales. The company also acquired important businesses like PA Semi, helping develop Apple Silicon chips.

Recently, the iPhone maker started rewarding engineers with $200,000 and also plans to raise wages for retail employees. The move shows Apple’s “power for money”.

Ad revenue from app developers may decline as they depend on venture capital to fund marketing. Apple’s ad business is also much smaller than its competitors and doesn’t contribute much to total revenue.

However, the new legal challenge is a risk that cannot be underestimated for Apple in particular and technology firms in general. For example, antitrust pressure could affect the $19 billion payment Alphabet paid Apple to make Google the default search engine on iPhones. Analysts believe it will impact about 3% of the company’s pre-tax earnings.

Some companies are more vulnerable than others. For its part, Facebook predicts that the advertising market faces many challenges ahead. The social network blamed Apple’s security feature for the huge loss of revenue. Apple denied the allegation and released its own report, quashing accusations that it created the App Tracking Transparency (ATT) feature to give its own advertising business an edge. Apple also dismissed the ATT feature as the sole cause of Facebook’s ad decline.

According to Apple Insider

Du Lam