Posted on October 25, 2011
Amazon.com reported its financial results for its third quarter ended September 30, 2011. The company reported that net sales
increased 44% to $10.88 billion in the third quarter. This is an increase from the $7.56 billion in sales for last year’s third quarter.
Amazon had operating income of s $79 million in the third quarter, compared with $268 million in third quarter 2010. Net income decreased 73% to $63 million in the third quarter, or $0.14 per diluted share, compared with net income of $231 million, or $0.51 per diluted share, in third quarter 2010.
Net profits are down due to spending by the company on future projects, such as the Kindle Fire. Amazon is taking a loss on each Kindle Fire sold in hopes of garnering more market share. That strategy appears to be working as the new Kindle Fire is selling like crazy. Well, pre-selling. They won’t ship until November 15, 2011 (we are anxiously awaiting its arrival).
Founder and CEO Jeff Bezos said,
“September 28th was the biggest order day ever for Kindle, even bigger than previous holiday peak days – we introduced Kindle Fire for $199, Kindle Touch 3G for $149, Kindle Touch for $99, and our all new Kindle for only $79.
In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions more than we’d already planned.”
