AMAZON PROFITS DOWN - INVESTMENTS SLOW TO PAY OFF

Amazon has posted a fourth quarter 2011 net income of $177m (£112m) – down 58pc on net income for the same period in 2010. Net sales for the full year were up 41pc to $48.08 billion but profits were lower than anticipated. Sales of both the Kindle e-reader and Kindle Fire were up but sources at Amazon said squeezed margins and the need to constantly innovate and release new products were the cause of the profit dip.



Based on the most recent results, Amazon are predicting that first-quarter operating income for 2012 may range from a loss of $200 million to a gain of $100 million, Sales will be $12 billion to $13.4 billion, but were previously estimated at the very top of this bracket.