Amazon Kindle e books downloads outsell its paperbacks
Amazon today announced that in America, it sold more of its e-books for the Kindle device it stocks than paperback books over 2010’s last three months.
However, its profit margins are down as it has spent money on building new depots, discounting and acquisitions. Amazon shares dropped 9% during after-hours trading as sales weren’t as good as was expected.
Three month net sales surpassed $10bn, which was up 36% to almost $13bn, however analysts predicted a much higher figure considering the build-up to Christmas. Three month net income was $416m – up 8% from 2009’s last three months.
The internet giant, which is the world’s biggest online retailer, saw its operating margin declining to 3.7% from the original figure of 5% in 2009 and those behind the scenes at the company gave a warning that it would drop to 2.8% during 2011’s first three months.
In an attempt to expand its empire, Amazon recently acquired Diapers.com as well as DVD mail-order and online streaming business Lovefilm. Amazon announced that, in America, since the start of 2011 it has shifted 115 e-book downloads per every 100 paperback books that were bought, even excluding all downloads of books it provided for free. However, rather than suggesting that the paperback industry is dying, it stressed that sales are also growing in that area.
Since a low-point of just $105.80 last July, Amazon shares have increased nearly 75% – a development that has understandably pleased all those connected to the company.