Amazon / AMZN Q3 2011 Earnings Posted, Revenue On The Rise, While Profits Go Down
Amazon has revealed its quarterly earnings shortly after the Netflix disaster when more than 800,000 subscribers have fled the streaming service in the past quarter resulting in a 37% drop of the company’s stock. On the other hand, Amazon is doing pretty well and it has remained the most popular online retailer thanks to $10.88 billion net sales which is a 44% increase year-over-year.
This beat the expectations of the analysts, however, it’s not all roses for Amazon as the net income is down by 73% from the last year. The Amazon net income for the third quarter of 2011 stands at $63 million which is a decent sum for a retailer. Although profits aren’t reaching the levels of previous years, except if you’re called Apple or Microsoft, $63 million are a lot of money that most companies in the world would love to have.
The Amazon CEO has confirmed that AMZN Q3 2011 earnings include September 28th when the company has revealed three new Kindles including the Kindle Fire tablet. Amazon’s first tablet is there to redefine the mobile computing business as the company believes that users don’t need highly-spec’d slates hence the Kindle Fire lacks a camera, 3G, or a microphone.
The reason why the Kindle Fire was so well received by the public is due to its price: $199.99. Amazon is looking to redefine the tablet market with great prices and it seems like more than 200,000 people have already pre-ordered the Kindle Fire, although many users were disappointed by the lack of a front-facing camera because they cannot use video chatting.
Amazon also offers Kindle e-book readers which are the indisputable leaders on this market while other companies like Barnes & Noble are lagging behind. The fourth and last quarter of 2011 should be very productive for Amazon, analysts say. The launch of both the Kindle Fire and Kindle Touch should attract a lot of interest from consumers who will rush on Amazon’s webpage to secure a tablet or a new eReader.
It’s too early to speak about the AMZN fourth quarter, however, many analysts like to speculate in order to see how the company’s stock will evolve. For the moment Amazon is one the few which can rest assured as the stock has increased by more than 30% since the beginning of the year.
You can pre-order an Amazon Kindle Fire using the link here. I remind you that the Kindle Fire release date is November 15th, though it’s possible that some users might get it earlier. The Kindle Touch can be pre-ordered at this link.