The first quarter was mostly positive for Amazon as its net sales increased 34% to $13.18 billion, compared to $9.86 billion in the first quarter of 2011. The strength of Amazon sales are pushed by strong demand for the Kindle Fire, which Amazon says is the best selling item on the entire site. Further helping the sales of Kindle Fires are the fact that of the top 100 selling ebooks, 16 are exclusive to Kindle.
While Net Sales were up, net income was down 35% from the first quarter last year due primarily to unfavorable foreign exchange rates. Looking ahead to the second quarter, Amazon predicts that net sales will be up 24-30% from the second quarter last year while Operating Income (loss) is expected to be down between 229% to 80%.