Amazon reports Loss for first time in 4 years




/ 8 years ago

Amazon reports Loss for first time in 4 years 1

The retailer reported revenue of $13.8 billion, up 27 percent but still just under analyst expectations of $13.9 billion and right in the middle of their own predictionsbetween $12.9 billion and $14.3 billion.

Amazon recorded a net loss of $274 million during the quarter, or $0.60 per diluted share, largely due to an investment in daily deals website LivingSocial. Even without the LivingSocial charge, the company with everything from A to Z would have lost $0.23 which is worse than most predicted. During the same time last year, the online retailer earned $63 million, or $0.14 per share.

CEO Jeff Bezos stood by his company’s strategy of selling products as cheaply as possible. “Our approach is to work hard to charge less,” he said in a statement. Amazon favors selling devices like the Kindle Fire HD at near break-even pricing and relying on their vast ecosystem to generate revenue after the sale. Sure it’s tough on margins, but it’s even tougher on the competition.

It’s one of the reasons why the company’s tablet is the best-selling product on the site. Unsurprisingly, the next two best-selling products are the Kindle Paperwhite and the $69 Kindle. Amazon says they are selling more of each of these devices than they are the #4 bestselling product, the third book in the Fifty Shades of Grey series.

The company’s high end tablet, the $299 Kindle Fire HD 8.9”, is scheduled to ship on November 20.

Source: New York Times



Support eTeknix.com

By supporting eTeknix, you help us grow and continue to bring you the latest newsreviews, and competitions. Follow us on FacebookTwitter and Instagram to keep up with the latest technology news, reviews and more. Share your favourite articles, chat with the team and more. Also check out eTeknix YouTube, where you'll find our latest video reviews, event coverage and features in 4K!

Looking for more exciting features on the latest technology? Check out our What We Know So Far section or our Fun Reads for some interesting original features.

eTeknix Facebook eTeknix Twitter eTeknix Instagram eTeknix Instagram

Check out our Latest Video

  • Be Social With eTeknix

    Facebook Twitter YouTube Instagram Reddit RSS
  • Latest Video

  • Features

  • Poll

    Do You Overclock Or Run At Stock?

    View Results

  • Archives


Send this to a friend