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?