Feeds

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

Current quarter not so sanguine, either

Beginner's guide to SSL certificates

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.