Tech Titans at a Crossroads: Amazon's Cloud Surge vs. Apple's iPhone Supply Struggles

S&P 500 and Nasdaq Update: Amazon Benefits from AWS Growth While Apple Faces iPhone Supply Headwinds

Published: October 30, 2025, 21:06 GMT
Author: James Hyerczyk

In this earnings season, two tech companies, Amazon and Apple, report results that show different growth paths. Amazon builds on its strong AWS cloud arm, while Apple struggles with supply limits that may slow sales, especially for the iPhone.

Amazon’s AWS Drives Profit and Revenue Growth

Amazon had solid Q3 earnings. Its earnings per share hit $1.95—far above the $1.57 that analysts expected—and revenue reached $180.2 billion. AWS stands out in these results; its revenue reached $33 billion, with a 20.2% gain from last year. This gain improved by 270 basis points over the previous quarter and shows AWS adds extra profit to Amazon.

While AWS makes up about 15% of total revenue, it supplies close to two-thirds of the operating profit. Amazon’s ad division did well, bringing in $17.7 billion.

Looking ahead, Amazon expects next-quarter revenue between $206 billion and $213 billion. This target is a bit lower than most estimates but fits with plans to grow AWS and invest in infrastructure. The company announced an $11 billion data center project aimed at AI work—a move planned for long-term gains.

A recent AWS outage did not shake investor trust. Many view Amazon as steady because of cloud growth and rising margins, making the stock a clear buy in the current market.

Apple’s Growth Hinges on iPhone Supply Unlocking

Apple posted a modest beat in its fiscal Q4 with EPS at $1.85 on revenue of $102.5 billion. Yet iPhone sales reached $49 billion, just below the $50.2 billion expected. CEO Tim Cook pointed to supply limits on the iPhone 17 and 16 as the main issue behind the lower sales.

Still, Apple guides for 10% to 12% revenue growth in the first Q of 2026. This would mean revenue of about $138 billion, above the roughly $132.3 billion that many expect. Hitting this target relies on easing the current supply limits before the December holidays.

Apple’s services segment kept its strong pace, posting a 15% rise to $28.75 billion. This part of the business kept gross margins above 70% and raised overall margins to 47.2%. Mac sales grew by 13%. Still, revenue in Greater China dropped 4% compared to last year, which may add pressure if iPhone sales fall further.

Apple’s near-term outlook remains risky. If it unlocks its iPhone supplies, the stock may do well. If supply problems continue, its high valuation based on services might not support the share price.

Analyst Takeaways: Amazon Is the Clearer Tactical Buy

The choice between these tech giants appears clear. Apple’s progress and stock growth now depend on fixing its supply chain so that the new iPhone lineup can hit the market. In contrast, Amazon shows steady growth through an expanding AWS unit and smart AI investments.

For many investors, waiting for clear signs that Apple has solved its supply issues seems wise. While that unfolds, Amazon’s persistent cloud strength and rising margins help make it a more understandable bet for tech growth.

About the Author:
James Hyerczyk is a U.S.-based technical analyst and educator with over 40 years of market experience. He studies chart patterns and price moves. He has written two books on technical analysis and is skilled in both futures and stocks.

Related Reading:

What’s the Outlook for US-China Relations After the One-year Trading Truce?
Tech Titans Split: Meta Tanks, Alphabet Rallies, Microsoft Stalls Despite Solid Beats
Powell Cautions Against Assuming More Cuts, Cites Uncertainty and Split Within FOMC

Disclaimer: The information provided is for education and research purposes and does not serve as investment advice. Investors should do their own research and talk to financial advisors before making any decisions.

Full money-growing playbook here:
youtube.com/@the_money_grower