Tuesday, August 21, 2018
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Samsung Launches CJG5 Curved Gaming Monitor
Samsung Extends Semiconductor Market Lead in 1H18
Apple Is Planning a New Low-Cost MacBook and New Mac Mini
HTC VIVE Debuts the Vive Wireless Adapter
HP kicks off Gamescom with OMEN Products
New TONE Platinum SE Offers Google Translate and Other AI Features
New Alienware Gaming Desktops and Dell Gaming Monitors Announced at Gamescom
NVIDIA Brings Real-Time Ray Tracing to Gamers with GeForce RTX Graphics Card
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > General Computing > Amazon ...
Last 7 Days News : SU MO TU WE TH FR SA All News

Thursday, April 26, 2018
Amazon Reports Huge Profits

Amazon.com contimues its succesfull moves in retail and cloud computing, as the company reported a surge in first-quarter sales and profit.

The world's largest online retailer said net income rose to $1.6 billion, or $3.27 per share in the quarter ended March 31. Sales rose 43 percent to $51.0 billion in the quarter.

The strong consumer adoption of Prime, Amazon's loyalty club that includes fast shipping, video streaming and other benefits, has been key to the jump in revenue. In the Q1, sales from Prime fees and other subscriptions grew 60 percent to $3.1 billion.

The e-commerce giant will also start charging $20 more for its Prime membership program. The new price, $119, will go into effect May 11 for new subscribers, CFO Brian Olsavsky announced Thursday. Existing members will be charged the higher price beginning June 16 as their accounts become eligible for renewal.

"The value of Prime to customers has never been greater," Olsavsky told investors. "And the cost is also high, as we pointed out especially with shipping options and digital benefits, we continue to see rises in costs."

Amazon Web Services (AWS), which handles data and computing for large enterprises in the cloud, saw its profit jump from the previous quarter, too. It posted a 49 percent rise in sales to $5.44 billion.

Amazon is also expanding business of selling space on its site, a move that could eventually be as a step towards taking advertising dollars from Google and Facebook.

With $2 billion or less of advertising revenue, Amazon is dwarfed by Google and Facebook, but it is growing fast, may be outselling ads on Twitter and Snapchat, and it has advantages that other contenders lack.

The company has the advantage to know exactly what consumers need, since the company has users' purchase data. That's more direct than knowing what people are searching for (Google) or what you want your friends to think you like (Facebook).

Amazon does not break out ad sales alone. It says advertising sales are the majority of its "other" section, which hit $2.0 billion in the first quarter.

Overall, Amazon said it expects operating profit this quarter between $1.1 billion and $1.9 billion, up from $628 million a year earlier.

The company is capable of delivering virtually any product to customers at a low cost, and at times faster than it takes to buy goods from a physical store. It acquired Whole Foods Market for $13.7 billion last year to help it send groceries to shoppers' doorsteps.

Amazon traditionally operates on a low profit margin and invests in a wide array of areas. The company plans to spend more on video content this year, including its renewed deal to stream Thursday Night Football games and a prequel television series to "The Lord of the Rings" in the works.

Earlier this year, Amazon announced a partnership with JPMorgan Chase & Co and Berkshire Hathaway Inc to determine how to cut health costs for hundreds of thousands of their employees.

Separately, the company and the U.S. National Football League announced a deal to stream Thursday night games during the 2018 and 2019 seasons on Amazon's Prime Video.

Nintendo Partners with Cygames to Boost Smartphone Gaming        All News        Intel Reports Record First-quarter Revenue on Demand for Data Center Chips, 10nm Chips Coming in 2019
Sony Profits Soar to $4.5 bn on Image Sensor Sales, Movies     General Computing News      Azure and Office Power Microsoft's Third Quarter Results

Get RSS feed Easy Print E-Mail this Message

Related News
Amazon to Release Live TV Recorder
Korea to Tax Google, Apple, Amazon
Amazon Reports High Earnings on Cloud Computing and Advertising
Amazon.com Faced Problems During Prime Day
Amazon to Compete With Cisco in Networking Equipment: report
Amazon Introduces Show Mode for Fire Tablets, New Show Mode Charging Dock and New Fire HD 10 Kids Edition
Amazon Alexa Will be the Room Service in Marriott Hotels
Amazon Introduces Amazon Fire TV Cube
Amazon to Stream English Premier League Soccer Matches
Amazon Introduces New ODM Solutions to Integrate Alexa into PCs
Amazon Admits Alexa Eavesdropped and Shared Conversation
Amazon Stops Shopping Ads on Google: report

Most Popular News
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2018 - All rights reserved -
Privacy policy - Contact Us .