Amazon Reports Quarterly Loss

Oct 25, 2012


      Bookmark and Share

Amazon revealed its third quarter earning results today, and reported the cpmpany's first quarterly loss in four years. According to the company, the net loss was $274 million in the third quarter. Shares dipped 9% but bounced back quickly.

While CEO Jeff Bezos lauded the sales numbers for the various Kindle models, he was characteristically vague. In a press release he said:

"Our approach is to work hard to charge less. Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point. And our approach is working - the $199 Kindle Fire HD is the #1 bestselling product across Amazon worldwide. Incredibly, this is true even as measured by unit sales. The next two bestselling products worldwide are our Kindle Paperwhite and our $69 Kindle. We're selling more of each of these devices than the #4 bestselling product, book three of the Fifty Shades of Grey series. And we haven't even started shipping our best tablet - the $299 Kindle Fire HD 8.9" ships November 20."

Despite the loss, Amazon raked in $13.8 billion in revenue, and the company's investors probably aren't too worried about its prospects. Especially considering that new line-up of Kindles Bezos referred to will be available just in time for the holiday shopping season.