Bezos satisfied with Amazon sales in 2012

Amazon continues with their very own policy ‘to increase sales at the expense of profit’. Last year their turnover grew 27% to over 61,000 million (45,000 million Euros), but suffered a loss of 39 million dollars (29 million Euros),
whereas a year ago was $ 631 million (€ 466 million) profit.

In their defence, it should be noted that they opened several stores around the world (one in Madrid) and Kindle stores in 2012.

Amazon CEO, Jeff Bezos, said the Kindle business has been a multimillion category which grew nearly 70% in 2012. What does that mean? How many units sold in absolute numbers? As usual, it ended up as a mystery.

Bezos also abounded that physical book sales increased 5% in December but could not hide the fact that this increase is the lowest in 17 years of life of Amazon.

"We are seeing the transition that we have been waiting for. After five years, the eBook is a multibillion dollar category for us, growing 70% over the previous year. 2001 was the year of the electronic reader (e-reader) and 2012
was the year of the electronic book (e-book,” Bezos said in the earnings report from the company to highlight its digital catalog and consists of 22 million products, including movies, music and books

Bezos’s gamble has not changed the sales at the expense of profits. Their appliances are sold at cost price with the hope that the owner subsequently paid content is downloaded, if not, your strategy is in danger of further damaging
trade margins.

In the fourth quarter, the profit of the company fell by half with only 97 million dollars (71.6 million Euros), although their sales were up 22% (21 270 million, 17.721 million Euros).  The share of Amazon, meanwhile, rose 45%
in 2012.

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Posted by Farasat Ali on Feb 4 2013. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry