Amazon Q2: sales zoom, income drops, Wall Street happy
First things first: no tablet news.
Oh, somebody did ask, and I thought it was a pretty clever way to do it. Basically, the question was, “So, are you going to be able to sell the tablets in brick and mortar stores like you sell the Kindle?”
The answer was pretty much, “No comment.”
Somebody also asked about the sales tax/affiliates issue. They said they were happy to have the Affiliates they have and that
“We support a federal simplified approach….”
Another questioner said, “It’s inevitable that 100% of your business will be taxed.” Amazon responded that they already collect sales tax or equivalent on half of their business now. Customers want convenience, a great experience, selection…they keep working on that.
Outside of that, not too much new. The ad-supported/AT&T supported six inch Kindle with wi-fi & 3G is the best selling Kindle. People are willing to pay more for 3G. That’s a good sign for those of us who like it.
Sales were up 51%! That’s an incredible increase, and shows that the business is not mature. Operating income was down, but not as much down as Wall Street expected…so that’s good. The stock was up some today, but we’ll know better tomorrow. It was up quite a bit in after hours.
If you want to listen to it yourself, you can do that here:
I don’t pretend to be a stock market expert…feel free to leave your comments if you do.
This post by Bufo Calvin originally appeared in the I Love My Kindle blog.