Always ready to offend people who like that sort of thing
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Amazon reports a 35 per cent sales surge in fourth quarter
BOOK AND DISC FLOGGER Amazon has reported a 35 per cent sales surge in the fourth quarter, claiming sales of its Kindle devices grew 177 per cent over the nine weeks through year end.
Net sales increased 35 per cent to $17.43bn in the fourth quarter, compared with $12.95bn in the fourth quarter of 2010.
During the nine-week holiday season, Kindle unit sales including both the Kindle Fire and e-reader devices increased 177 per cent over the same period a year earlier, Amazon said.
Operating cash flow increased 12 per cent to $3.9bn for the year, compared with $3.5bn for calendar 2010.
Operating income was $260m in the fourth quarter, compared with $474 million in the fourth quarter of 2010. However, net income decreased 58 per cent to $177m in the fourth quarter, compared with net income of $416m in the fourth quarter of 2010.
"We are grateful to the millions of customers who purchased the Kindle Fire and Kindle e-reader devices this holiday season, making Kindle our bestselling product across both the US and Europe," said Jeff Bezos, founder and CEO of Amazon.com. "Our millions of third-party sellers had a tremendous holiday season with 65 per cent unit growth and now represent 36 per cent of total units sold."
For the full year, net sales increased 41 per cent to $48.08bn, compared with $34.20bn in 2010.
Operating income decreased 39 per cent to $862m, compared with $1.41bn in 2010. Net income decreased 45 per cent to $631m in 2011, compared with net income of $1.15bn in 2010. µ
Tags: Internet
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And the share price of AMZN is DOWN today, just like the share price of ARMH is down.
Why you ask? Look at the ANALysts expectations - not good long term. Amazon needed to increase their net income, but it decreased.
The other big item hanging over Amazon is the prospect of a US national sales tax, which takes away a lot of advantage in many states where sales tax is not collected (although it is really not an advantage because naturally all those who buy from Amazon and don't pay sales tax at the time of purchase remit the sales tax to their states on their own).
Why the marked decline?