Amazon posts lower profits as competition grows
Amazon.com has posted a quarterly profit fall in the face of stiffer competition.
Amazon.com has posted a quarterly profit fall in the face of stiffer competition.
Amazon said net profit had dropped to $30m (£18m) compared to $54m for the same quarter last year. Sales rose to $1.9bn from $1.5bn a year ago.
Amazon’s share price dropped 1.62% following the results, as analysts became worried about increasingly squeezed profit margins at the company.
They are also concerned about a lack of further product differentiation as competitors move into the on-line markets Amazon helped to establish.
UK competitors like Play.com have impacted on Amazon’s sales here with completely postage-free services, while Amazon only offers free postage on higher value sales.
Read more on IT strategy
-
How can managed print services providers thrive in the Amazon Era?
-
Amazon CEO Jeff Bezos to step down as e-commerce giant celebrates first-ever $100bn revenue quarter
-
AWS downplays risk of competitors threatening its public cloud dominance during Q4 results
-
What AWS and Azure’s cloud market growth says about IT