Sales Up For Amazon But Profit Goes Down

Amazon announced that its sales were up nearly 50% in the second quarter thanks to its E-reader Kindle which is doing fairly well business in North America. It also said that though sales were on rise, profit figures, instead of improving, went down.

Amazon announced on Tuesday that due to its large investment in business, its profit figures were not upto to the mark. Amazon’s huge leap in sales is mostly due to Kindle, which is proving to be the best product by the company so far.

According to Amazon, its revenue increased to a bulky $9.91 million but its profit fell down to$191 million. Amazon co-founder Jeff Benzos said that,”Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade.”

This Seattle based company earlier made money by selling and trading various items online. Recently it launched an E-reader by the name of Kindle which is available in both 3G and Wi-fi models. Its 3G based model is carried by the American telecom giant AT&T.

Amazon is currently investing heavily in China, where it has seen tremendous growth. It is rumored that Amazon’s new Kindle models will be released first in China.

Will investment in the most populous country with cheapest labour available help Amazon’s growth in the long term?

Photo Courtesy of soumit
Photo Courtesy of TAKA@P.P.R.S

Advertisements

Android Gingerbread Coming To AT&T

Surprise for AT&T users! If you have got an Android phone and are a subscriber of AT&T, you might get an Android Gingerbread update. AT&T has announced that it would start upgrading subscribers to Android 2.3, known as Gingerbread, in the coming weeks.

The upgrade will start with Motorola Atrix 4G and will subsequently come to 6 other handsets. This upgrade was long awaited as AT&T users were not able to upgrade their Android OS. This announcement will definitely prove a bliss for them.

Though this version of Android is not the latest one, but still it will certainly add some cool features which the previous versions were lacking. This version comes with improved GUI, new applications, cool API and many other features.

Usually, Google launches a number versions of its Android platform in a year. This keeps users happy but sometimes it takes a hell lot of time for users to get those updates on their devices.

The updates get such a long time to roll out because every company uses different hardware. And to make that hardware compatible with the current version of Android OS, some modifications are made in the OS. This whole procedure takes a lot of time. Currently, only Google Nexus gets periodic updates for its OS as it is released by Google itself.

Photo Courtesy of Saad Irfan
Photo Courtesy of (M)factr

Verizon Lags Behind AT&T In The iPhone Sales

Verizon wireless, which is a joint venture of Verizon and Vodafone, has gone a long way in the iPhone activations but still it lags behind AT&T, which is its number one rival in this sector. No doubt, Verizon’s sales have increased as compared to AT&T, but the total number of its subscribers still remain less than those of AT&T.

When Verizon started selling the iPhone, it was expected that many of AT&T’s customers will shift to Verizon because of the poor service offered by AT&T. Upto some extent, it did happen but it was not enough to beat down AT&T’s sales.

On Friday, Verizon reported that it had activated around 2.3 million iPhones during its second quarter. On the other side, AT&T announced that it had activated 3.6 million iPhones, out of which a quarter were from new customers of its network. So a clear cut difference is there in the sales of both these giants.

There can be many reasons for Verizon’s failure to overcome AT%T. A major reason is that in amidst of a large number of the iPhone 5 rumors, people are deploying a strategy of ‘wait n watch’. If the iPhone 5 is going to be launched in this fall, there is sense in waiting for it instead of buying an existing model.

What do you guys think?

Photo Courtesy of Yutaka Tsutano
Photo Courtesy of Todd Kravos