Amazon records 22% increase in sales, income turns red; Apple developer site remains down
What is more important sales growth or net income? That is the issue when comparing the quarterly earnings reports released by Amazon.com and Apple. While Apple remains wildly profitable (though its quarterly net income declined), Amazon yesterday was able to report a 22 percent increase in sales, though it also dipped into the red, losing $7 million on the quarter, versus a net profit of $7 million a year ago.
Amazon’s sales growth was pretty much across the board. Sales in both North America and Internationally grew, and sales of both media and merchandise also grew. The problem was that costs also grew at the same time. How long investors continue to sign off on the strategy is an open question. Amazon’s stock rose about a point and a half yesterday in trading, but is down more than that this morning in pre-market trading.
As usual, important details concerning Kindle sales were missing from the report as the company continues to put a happy face on their tablet sales without releasing hard numbers.
“We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content,” said Jeff Bezos, CEO of Amazon.com.
Apple’s developer site remains locked down, though iTunesConnect remains accessible. The site has been down since last week following what Apple described simply as an intrusion.
The Guardian, which reported earlier that the site had been hacked by a Turkish security consultant, Ibrahim Balic, has since backtracked on their reporting.
The Guardian attempted to confirm the hackers claims but “attempts by the Guardian two days ago to contact 29 of the group whose details Balic claims to have acquired found that seven of the emails bounced — because the email is no longer operational — and not a single one of the others has responded to a request to say whether they are registered with Apple. Nor could any of the emails or names be discovered online — which would be unusual for any active developer.”
App Updates: Amazon updated its Cloud Player app yesterday. fixing the loading speeds.
Meanwhile, AOL-owned Patch, its local news network of sites, updated its iPhone app. The app description gives a long list of improvements and fixes to the app in an epic display of app description writing. Unfortunately, though, the first user review complains of error messages following the update.