Feeds

Amazon rides shoe-fetishist to 68% profit leap

As Kindle goes - gasp! - brick and mortar

Boost IT visibility and business value

Amazon says its profits climbed 68 per cent in its first quarter. And it says the Kindle "remains our #1 bestselling product." But, yes, it's unclear how much of that profit rise came from the seminal ereader, which now sits in the shadow of the Apple iPad.

Amazon has never given specific Kindle sales figures. And this didn't change with today's announcement of the company's first-quarter earnings.

During the quarter that ended on March 31, the etailer pulled in profits of $299 million, up 68 per cent from the same quarter last year. Revenue grew to $7.13 billion, a 46 per cent leap from 2009.

But these numbers aren't quite as bright as they seem. On January 1, Amazon introduced an accounting change that tags part of its Kindle sales as hardware revenue, and that means it shows up on the balance sheet sooner than it did in the past. What's more, this is the first quarter where the company has benefited from its purchase of shoe-fetishist etailer Zappos, which it acquired last summer for $850 million.

In any event, the company's Q1 number beat the guesses of the Wall Street guessmen. But its predicated Q2 numbers fell below the guesses of the guessmen, and its stock took a tumble, falling 6 per cent in after-hours trading.

This, however, is not where Bezos is looking. "We remain heads-down focused on customers," read a canned statement from CEO and founder Jeff Bezos. "Amazon Prime has just celebrated its fifth anniversary, adoption of Amazon Web Services continues to accelerate, Kindle remains our #1 bestselling product, and earlier this week, Kindle selection reached 500,000 titles."

Which sounds a lot like what he says every quarter. The company not only declines to give Kindle sales figures, it also stays mum on the size of Amazon Web Services, which provides on-demand access to computing resources and applications.

But the company does like to tell you how many titles are in the Kindle store. And in the long run, it's the ebooks Amazon is most interested in selling - not the physical ereaders. Amazon recently introduced Kindle software for the iPad, and such software is already available for the iPhone, the PC, and the BlackBerry.

That said, the physical Kindle is still a means of selling those ebooks, and today, Amazon confirmed that for the first time, the device will be available in a good old-fashioned brick and mortar outlets. The Kindle is expected to hit Target stores in the US later this month. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.