The value of Google and Apple products and services is likely to continue to rise in the years to come, but it is likely not to be as high as it was in 2017.
The company posted a 0.5% fall in second-quarter earnings and a 3.3% decline in the third quarter of 2018, compared with a 3% increase in the same period last year.
The results came as the world’s biggest search engine and online retailer saw its share of internet searches, search volume and ad revenue fall by 6.5 percentage points to $3.3 billion in the period.
While Google has seen significant growth in its advertising revenue, its search engine business has suffered as its dominance has waned.
“This was the best second quarter ever for Google,” said Andrew C. Brown, chief financial officer of online advertising and marketing at market research firm comScore.
“We are seeing Google continue to focus on the areas that really matter and to drive the right results.”
Amazon also saw growth in the quarter, posting a 4.2% rise in second quarter earnings and an 11.4% rise on the same quarter last year, while Apple reported a 7.3 percent rise in revenue for the period, up from a 5.3 percentage point fall.
Apple has seen strong growth in smartphone sales, with shipments increasing 17% in the year to March, the highest level since 2013.
Amazon’s iPhone unit accounted for 70% of all Apple sales during the period but its smartphone shipments were down 8% year-on-year.
“The year is very different,” said David Pogue, senior analyst at Kantar Worldpanel ComTech.
“I don’t think we are seeing the same sort of growth for Google or Apple.”
However, Pogue cautioned that the growth in Apple’s mobile sales in 2018 was offset by the fact that its revenue was down 4% from a year earlier.
“There is a little bit of a lull in the growth of the mobile business.
If you look at the smartphone market, it’s going to continue growing,” he said.
The growth of Amazon and Apple was also offset by weak earnings for online retailer Amazon, which posted a loss of $9.5 billion, or 13 cents per share, on revenues of $16.6 billion.
Amazon shares fell 0.7% to $1,868.70 in afternoon trading.
“Amazon’s growth has been stagnant for a few years now,” said Paul Graham, chief executive of mobile ad network adMob.
“They are very much focused on delivering a good experience to customers on their devices.”
Amazon’s stock fell 2.2%.
Google declined 3.4%.
Apple fell 0% to close at $982.80 in early trading.
A number of other companies posted strong second-half results as well, including Uber, Netflix, Spotify and Facebook.
While Google’s revenue was up 6% year on year, it fell 9% on the year, reflecting a drop in ad revenue, according to comScore, which said Google’s share of ad revenue fell by 12% to 31%.
Apple posted a 10% drop in second and a 5% drop on the third.
Amazon posted a 6% decline and a 1% fall on the first three quarters.
Amazon posted a decline of 3.2 percentage points in second revenue.
Apple recorded a decline in fourth-quarter revenue of 5.5%.
Google posted a gain of 2.7%.
Uber posted a drop of 3 percentage points.
Netflix recorded a 2.5 percent gain and Facebook recorded a 3 percentage point gain.