Amazon Reports 34% Revenue Increase, Kindle Fire Nabs Half of Android Tablet Market
April 27, 2012 10:13 AM
comment(s) - last by
Amazon CEO Jeff Bezos
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
) released its Q1 2012
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 Amazon.com.
"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 Amazon.com. "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.
This article is over a month old, voting and posting comments is disabled
Amazon is practically giving away stuff
4/27/2012 12:55:04 PM
At the current profit levels Amazon is giving away goods and services in order to gain stock market favors. They win retail by crushing competitors with low prices and super thin margins. Best Buy is getting crushed here because they can't afford to give away goods when they have to purchase and run retail stores.
Amazon Kindle makes no money because people buy it, root it and put free stuff on it. Then Wall street just pump up the stocks.
Company's PE ratio is ridiculously high which shows it's a classic bubble.
RE: Amazon is practically giving away stuff
4/27/2012 1:08:10 PM
Plus I think it goes to show that More people use Kindle as a reader for books then as a toy. If I as a customer read a lot vs play a lot, I don't think I would start to pay $399 with a KoBo App to do the same thing.
"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
Kindle Fire Moves 4.7 Million Units, Cuts Into iPad's Market Share
March 14, 2012, 11:29 AM
Amazon Profit Drops in Q4 2011 Earnings Report
February 1, 2012, 10:42 AM
Facebook Adds Satire Tags to Its Auto-Generated "Related News" Posts
August 18, 2014, 10:43 AM
Comcast, TWC Pull Dinner Gift for FCC Commissioner... Sort Of
August 15, 2014, 1:10 PM
Comcast Accused of Wooing FCC Commissioner w/ $110K Dinner
August 13, 2014, 8:20 PM
Quick Note: Nokia’s Lumia 520 Available for $39.99 Off Contract Today Only
August 13, 2014, 10:37 AM
Wikipedia Scores $140,000 in Bitcoin Donations in One Week
August 11, 2014, 9:32 AM
China to Require Real Names for Chat Apps
August 8, 2014, 8:28 PM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 PM
Cell Phone Thief Calls 911 After Her Victim Chases Her and Her Male Cohort
August 14, 2014, 12:11 PM
Smarter Wired, Wireless Chargers Set to Shake Up Mobile Industry
August 14, 2014, 6:39 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information