Amazon gets good and bad news in financial numbers

Amazon had some good news and some bad news in its latest financial report.  The online retailer said that for the quarter that ended on December 31, its revenues came in at $17.4 billion, 35 percent higher compared the same period a year ago. However, the bad news came in the net income numbers. Amazon had just $177 million in profits for the quarter, down 58 percent from the same period a year ago.

Amazon continued to only give a vague idea of how many of its Kindle line of eReaders and tablets it has sold. In December the company said it sold "millions" of those devices during the holiday period. Today Amazon repeated that "millions" of Kindles were sold but never got more specific than that. Amazon did say that sales of its Kindles, including the Kindle Fire tablet, increased 177 percent during the nine week period that ended on December 31.

It's clear that Amazon is selling a large number of Kindles. However, since it refuses to give investors and the general public more information than just the general "millions" sold, it's hard to tell how the Kindle line, especially the Kindle Fire tablet, are selling compared to Apple's iPad. Apple announced last week that it had sold over 15 million iPads during the last quarter.

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13 Comments

Oh the horror. They only made 177 million dollars in profit, HOW CAN THE OWNERS LIVE WITH THAT LITTLE MONEY?

flexkeyboard said,
177 Million dollars isn't what it used to be. Big companies can't brush their teeth with that kind of money anymore.

This is profit not gross. Also this is only 1 quarter. They are doing fine.

warwagon said,
I still think the free prime shipping is taking them to the cleaners.

Not likely. Most of the major on-line retail stores have established shipping agreements in place with UPS/Fed-Ex. What Amazon actually pays to ship is a minimal fee.

Rohdekill said,

Not likely. Most of the major on-line retail stores have established shipping agreements in place with UPS/Fed-Ex. What Amazon actually pays to ship is a minimal fee.

Amazon spends an average of more than $90 annually per customer to supply all of Prime's services. That's a net loss of at least $11 per customer, adding up to hundreds of millions of dollars in annual losses for Amazon.

Read more: http://moneyland.time.com/2011...huge-success/#ixzz1l6rpNFsG

Holy crap. $17.4 billion in revenue and just $177 million profit is not good. They'll probably have to be making some changes for the worse (for the consumer) unfortunately.

When you have that little profit compared to that large of an overall revenue it's not good. At least there profitable but still not good numbers.

I think people are forgetting that Amazon is not a single sell business. Of course their profits are low for this quarter as they lose money on every device they sell. However, all those devices that they sold this quarter will be making them profits in the next quarter as people will continue to use their Amazon devices as conduits into the Amazon shopping experience.

I'm pretty sure they knew profits would be down and investors knew as well. so this is probably no surprise to them. and it is 1 quarter.

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