About the same time a year ago, Amazon reported $7 million in quarterly profit. Things were looked up for the e-retail giant who was venturing into the mini-tablet arena. However, despite having grown significantly in the past few months, the company has now reported a quarterly loss of $7 million.
The quarterly results of Amazon’s performance have been fairly disappointing. And they have surprised many gurus who have been betting big on the company’s profit margins.
However, in retrospect, these results don’t look all too surprising. Yes, Amazon has been doing exceptionally well in the tablet arena and has garnered huge success for many tablet models and accessories. It must be noted here that at the same time, Amazon has been investing significantly in different arenas, trying to expand its mobile content ecosystem and bringing many new products and services into the fold of Kindle devices.
These new investments have apparently taken a toll at the company’s profit margins. And so, although the company was able to muster a sales growth of 22%, it still ended up in reporting a quarterly loss of $7 million. In the long run, however, it can be hoped that Amazon will be able to grow its content ecosystem and bag better profits.