Feeds

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

Current quarter not so sanguine, either

New hybrid storage solutions

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. ®

New hybrid storage solutions

More from The Register

next story
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
Alibaba swings a large one with STONKING IPO legal bills
Chinese e-commerce beast searches for $21bn from investors
EMC has nothing to say on VMware sale plan
Rumour and counter-rumour swirl around Wall Street
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.