On October 29, 2020 local time, alphabet, the parent company of Google, released its third quarter results as of September 30, 2020. Although advertising is still the main revenue stream, there is no doubt that technology giant Google has more than that ambition. In terms of overall revenue, alphabet’s revenue in the third quarter was $46.173 billion, up 14% from $40.499 billion in the same period last year. Excluding the impact of exchange rate changes, alphabet’s revenue increased by 15% year-on-year, while the revenue expected by refinitiv was $42.9 billion. In terms of profits, alphabet’s net profit in the third quarter was $11.247 billion, up 59% from $7.068 billion in the same period of last year. < / P > < p > it’s worth mentioning here that alphabet’s revenue fell by 2% in the second quarter, which is the first time that Google’s revenue has fallen since it went public. < p > < p > affected by the financial report, alphabet rose 9% in after hours trading, as the third quarter earnings exceeded expectations, especially the strong growth of advertising revenue. In addition, the revenue of Google cloud business was $3.444 billion, up from $2.379 billion in the same period of last year (a year-on-year increase of 45%). < / P > < p > in addition to the advertising + cloud business, Google’s revenue also includes a Google other (other revenue) segment, which was $5.478 billion, compared with $4.05 billion in the same period last year. < / P > < p > based on the above information, it is not difficult to find that after the first decline in revenue in the second quarter of fiscal year 2020, Google’s performance exceeded expectations, among which the core advertising business rebounded strongly. According to foreign media CNBC, pinterest and snap, two online advertising companies, recently published similar growth trends. < / P > < p > this year’s performance, including this quarter, demonstrates the value of our founding product Google search, as well as the significance of investing heavily in artificial intelligence and other technologies. < p > < p > in the financial report teleconference, Sundar Pichai revealed his ideas on two aspects of business: one is cloud, the other is hardware. < p > < p > sun Pichai mentioned that cloud business revenue increased by 45% in the third quarter, mainly due to Google’s cloud business strategy, data processing and analysis advantages, and the acceleration of digital transformation of cloud computing during the epidemic. < / P > < p > starting from the fourth quarter of 2020, the company will report the cloud business as a separate sector, providing investors with more details like Amazon. Through this segmentation, the outside world will have a better understanding of the scale of our investment, which will help to measure the progress we have made over the years, thus creating sustainable value. < / P > < p > that is to say, as the third largest player in the cloud computing track after Amazon and Microsoft, Google’s financial report will be in line with the industry leader. < p > < p > also on October 29, 2020, Amazon released its financial report, which showed that the revenue of cloud computing business in the third quarter was 11.601 billion US dollars, an increase of 29% compared with the same period of last year of 8.995 billion US dollars; the operating profit of cloud business was 3.535 billion US dollars, which was 56% higher than that of US $2.261 billion in the same period of last year. < / P > < p > horizontally, the revenue of Amazon’s cloud computing business is more than three times that of Google’s $3.444 billion. < p > < p > at present, the revenue volume of Google cloud business is still not comparable to that of industry leaders, but it can not be ignored that Google cloud business has increasingly become an emerging growth point emphasized by alphabet, such as the following data: < / P > < p > in fact, the hardware including pixel mobile phone is included in the Google other (other) section of financial report. < p > < p > Ruth Porat said the increase to $5.48 billion from $4.05 billion in the same period last year was the result of users playing Google games during the outbreak – there are signs that user behavior is beginning to return to normal levels. < / P > < p > we are making further investment in hardware, some of which may take 2-3 years to see the results, but I am very optimistic about the road map for the future. I think we’ve shown the clear value proposition of pixel 4 or pixel 5, and we’ll build on that. Next year you’ll see that our deeper investments will work in hardware. < / P > < p > on September 30, 2020, Google officially held its annual hardware conference, which focused on pixel 5 and pixel 4a (5g) mobile phones. < / P > < p > it can be said that this time, Google has greatly adjusted its product ideas – it has removed the black technology elements that have been paid much attention to in the past, and added many functions close to the user experience, such as large battery, reverse wireless charging, IP68, etc. < p > < p > this practice reflects the progress of Google in the hardware product level, but it is slightly contradictory: at the press conference, Google officials tried to weaken the sense of existence of pixel 5. < / P > < p > the reason behind this is that pixel series mobile phones are not competitive in the market, which is out of reach for Chinese consumers, and the sales volume is naturally very poor. According to IDC, a research company, Google shipped 7.2 million pixel phones in 2019, which is in sharp contrast to IDC’s latest global smartphone market statistics report. < / P > < p > and today, Sundar Pichai emphasizes that it will increase investment in hardware, whether it is for better integration of hardware and software, or the idea of balancing the revenue structure is not easy. Global Tech

By ibmwl