Amazon profits down in Q4 2011 despite Kindle success

Amazon has just announced its financial results for the fourth quarter of 2011 and despite sales of Kindles nearly tripling over the Holidays, the company’s profits were down and profit margins were very tiny. Amazon’s net income stood at $177 million, down 58% year-over-year. Just as before, though, the company gave no hard numbers about Kindle sales, so that relative growth gives us little idea about actual sales.
With total sales growing by 35% to $17.4 billion that profit margin just looks very, very slim. Part of the reason is that Amazon is selling its Kindle Fire at about the price it manufactures it for, or at a slight loss. The outlook for the next quarter is not rosy either - the c... »read more

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