Friday, January 28, 2011

E-books on Amazon have become popular conventional

In the last quarter of 2010 to online store Amazon demand for books for the Kindle electronic device exceeded sales of traditional printed materials.

In this case, the size of our profit fell because of costs to write-down of the goods, acquiring new companies and the construction of additional warehouses.

The results of the Amazon, which sells consumer goods, were lower than expected, causing its shares fell 9%.

Company sales for the last three months of last year for the first time crossed the line in the $ 10 billion, reaching 12.95 billion, but experts are predicting higher numbers.

Amazon net profit for the period totaled 416 million dollars, which is 8% higher than the figure of the same quarter last year.


At the same time, the operating margin decreased to 3,7% compared to 5% at the end of 2009, and the company warned that first quarter 2011 operating margin will range between 2,8% and 3,8%.

At the company's financial results and the impact recent acquisition of Amazon, who bought the online shop of children's goods Diapers.com and one of the largest networks of video rental Lovefilm.

"Milestone"

Representatives of the Amazon have announced that beginning this year in the United States for every 100 ordinary paperbacks sold 115 books in electronic format, and does not include books that can be downloaded free of charge.

However, they stressed that sales of print products is also growing.

"In July last year we announced that sales of books for the Kindle electronic format exceeded the demand for books in hardcover and predicted that in the second quarter of this year, they will manage the sale of books in hard cover," - said the head of Amazon, Jeff Bezos.

"So what we have achieved this important milestone even sooner than expected, and this despite the fact that the demand for books in paperback continues to grow," - he added.

Representatives of the company was not informed, however, how many were sold e-book Kindle. They indicated only that their number has surpassed sales of the last book in the series about Harry Potter, and that the device has broken all records of sales of certain goods in the history of Amazon.

The company's shares have risen almost 75% compared with the lowest mark in 105.8 dollars registered in July last year.

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