Kindle helps Amazon profit beat expectations

Oct 26, 2009 | Uncategorized

Amazon has reported profits that have outstripped analysyst forecasts, as the online retailer has seen strong demand for its new e-book reader Kindle. Third-quarter net income increased 69% to $199 million from a year earlier, the company said today in a statement. Sales rose 28% to $5.45 billion. Chief Executive Officer Jeff Bezos has attracted […]

Amazon has reported profits that have outstripped analysyst forecasts, as the online retailer has seen strong demand for its new e-book reader Kindle. Third-quarter net income increased 69% to $199 million from a year earlier, the company said today in a statement. Sales rose 28% to $5.45 billion. Chief Executive Officer Jeff Bezos has attracted customers by expanding overseas, offering shipping promotions and introducing new versions of the Kindle electronic reader.
26/10/2009


Amazon also announced four acquisitions this year, including the online shoe seller Zappos, to broaden its reach.
Sales in the fourth quarter will rise to between $8.13bn and $9.13bn, Amazon said. That compares with the $8.19bn predicted by analysts. Operating income will be $300m to $425m in the period, the company said.
Third-quarter net income rose from $118 million, or 27 cents a share, a year earlier.
This month, Amazon unveiled an international version of its Kindle. The company is also trying to get its e-books onto more devices. Today, Amazon introduced a program that lets consumers read Kindle books on personal computers.
“Kindle has become the No. 1 best-selling item by both unit sales and dollars — not just in our electronics store but across all product categories on Amazon,” Bezos said in the statement.
Amazon has about 60pc of the e-reader market in the US, according to Forrester Research.l Sony’s e- reader ranks second with 35%.

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