As the first quarter culminates, a number of companies have been coming out with their quarterly performance. While many have done pretty good on it, Amazon seems to have achieved somewhat of a mix of good and not-so-good performance. The company was able to raise its overall sales by a whooping 34% but at the same time, its income went down by 35%.
During the first quarter of 2011, Amazon’s total revenue clocked at $9.86. During this year, this has been raised to $13.18 billion. However, the total income of Amazon during Q1 2011 was $201 million but apparently, it took a significant hit and the total income during this quarter was a mere $130 million.
Although the company hasn’t revealed any exact figures regarding Kindle sales, it still continues to say that Kindle has been one of its best-selling and most loved products. According to the CEO of Amazon Jeff Bezos ‘I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store.’
The fact that Amazon’s net income seems to be taking a hit seems understandable given the fact that the retailer is in somewhat of a transition from non-digital to digital products. Digital products have really gained major traction in recent times and is bringing in big buck for companies such as Apple and Google. Amazon is trying to break that market but for now, it will continue to assert itself in the e-book area.
This is manifest in Bezos statement which further read, ‘If you’re an Amazon Prime member, you don’t even need to buy these titles – you can borrow them for free – with no due dates – from our revolutionary Kindle Owners’ Lending Library. The Kindle Owners’ Lending Library is heavily used by Kindle owners, and it has extremely unusual features that both authors and customers love.”
“Every time you borrow a book, the author gets paid – and we have an inexhaustible supply of each title so you never have to wait in a queue for the book you want. Kindle is the bestselling e-reader in the world by far, and I assure you we’ll keep working hard so that the Kindle Store remains yet another reason to buy a Kindle!.’