Feeds

Amazon's profit disappoints, thanks to Apple's iPad success

Current quarter not so sanguine, either

Secure remote control for conventional and virtual desktops

Amazon reported disappointing second-quarter profit on Thursday, as competition from Apple, weakening European currencies and shrinking consumer spending ate into the company's bottom line. Shares tumbled 15 percent following the announcement.

CEO Jeff Bezos said sales for its Kindle e-book reader were accelerating, but they still took a beating from Apple's iPad, which went on sale in April. Earlier this week, Apple said it has sold 3.27 million iPads since the debut, and an analyst recently forecast Cupertino to ship 12.9 million of the devices by the end of the year. Apple's success has forced Amazon to cut the price of the Kindle to $189.

Net income for the quarter grew 45 percent to $207m, or 45 cents a share, well below the 54 cents analysts had projected. Amazon said operating profit in the current quarter would be between $210m and $310m, which was also much less than Wall Street had been expecting. Sales grew 41 percent to $6.57bln.

Sales of electronics and general merchandise grew by 69 percent, and revenue from books and other media rose 18 percent.

In addition to warding off Apple, Amazon is also coping with unfavorable currencies from overseas, where the US company does the majority of its business. Add nervous consumers to the mix, and it's fair to say prospects over the next few quarters could be tough for the e-commerce company. ®

Secure remote control for conventional and virtual desktops

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
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?