Amazon CEO Jeff Bezos   (Source:
ComScore recently released a study showing that the Kindle Fire made up more than half of the Android tablet market with 54.4 percent in February 2012

Amazon (AMZN) released its Q1 2012 financial results for the quarter ended March 31, 2012, where it saw a decline in earnings but managed to top previous forecasts.

According to the report, Amazon's net sales increased 34 percent to $13.18 billion in Q1 2012 compared to $9.86 billion in Q1 2011. Operating cash flow also increased 1 percent to $3.05 billion for the trailing 12 months compared to $3.03 billion for the trailing 12 months ended March 31, 2011.

Operating income dropped from $322 million in Q1 2011 to $192 million in Q1 2012. Net income also took a hit, falling from $201 million (44 cents per diluted share) in Q1 2011 to $130 million (28 cents per diluted share) in Q1 2012, which is a 35 percent dip.

Common shares also slid slightly from 466 million for the quarter ended March 31, 2011 to 464 million for Q1 2012.

Amazon even topped previous revenue forecasts, where investors expected Amazon to post earnings of 7 cents per share and a revenue of $12.9 billion. The stock is up nearly 14 percent today.

Amazon's claim to fame at the moment is its Kindle line, which includes various e-readers and its new Kindle Fire tablet. These products have given Amazon a huge sales boost, where the Kindle Fire alone remains the No. 1 bestselling item on

"I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else," said Jeff Bezos, founder and CEO of "They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store. If you’re an Amazon Prime member, you don’t even need to buy these titles – you can borrow them for free – with no due dates – from our revolutionary Kindle Owners’ Lending Library.

"The Kindle Owners’ Lending Library is heavily used by Kindle owners, and it has extremely unusual features that both authors and customers love. Every time you borrow a book, the author gets paid – and we have an inexhaustible supply of each title so you never have to wait in a queue for the book you want. Kindle is the bestselling e-reader in the world by far, and I assure you we’ll keep working hard so that the Kindle Store remains yet another reason to buy a Kindle!”

It's not hard to see why Bezos is so enthusiastic about the Kindle line. ComScore recently released a study showing that the Kindle Fire made up more than half of the Android tablet market with 54.4 percent in February 2012. This is a significant increase from December 2011, where the Kindle Fire captured 29.4 percent of the market, and from January 2012, where it grabbed 41.8 percent of the Android tablet market.

Looking forward, Amazon predicts that net sales will land between $11.9 billion and $13.3 billion for Q2 2012, which would be a 20 to 30 percent increase from Q2 2011. The company also sees an operating loss between $260 million and $40 million for the next quarter, which would be a 229 percent and 80 percent drop from Q2 2011.

Sources: comScore, Amazon

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