By: Andrew Cheng
In recent days, although the economic profits of the tech and retail companies still beat expectations, there is some evidence that foreshadows that there will be a sudden drop in the earnings of those companies. As the gas prices increase enormously, customers will put more money into gas stations than some technology products or more products in their groceries. In this way, the loss of profits will decrease due to the sharp gas price increase.
Best Buy chief executive Corie Barry said, “As high inflation has continued, and consumer sentiment has deteriorated, customer demand within the consumer electronics industry has softened.”
Thomas Combs, a 52-year-old small-business owner in Dallas, expressed his feeling that everything has changed in his life. “I don’t like seeing corporations having record earnings the last couple of quarters then to be told of supply chain problems or refining or whatever is to blame for higher consumer prices,” Combs said. “You grow pessimistic but realize you must roll with it if you want to survive in today’s America.”
Big tech companies such as Apple are not providing negative feedback from the decreasing profits from some un-spread electrical devices. Apple created iPhone, which became a commonly used and necessary product for people. Thus, the company believes Apple’s profit will not be impacted by the sharp increase in gas price and may be enough to support the company and maintain its primary products.
Overall, the issue of high gas prices in the US has caused a significant impact on tech and retail companies, which may eventually lead to more significant problems for the nation's economy.
Source: https://drive.google.com/drive/folders/11CnG_dopKM4ReIpockT-Z26t4PNTpOyZ