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Amazon building millions more Kindle Fires due to demand

October 28th, 2011        

Amazon building millions more Kindle Fires due to demand

Tuesday in its report announcing the financial results for the third quarter ending September 30, Amazon said that September 28th was the biggest order day ever for Kindle, even bigger than previous holiday peak days. That was the day Amazon introduced the Kindle Fire for $199, the Kindle Touch 3G for $149, the Kindle Touch for $99, and the all new Kindle for only $79.

“In the three weeks since launch, orders for electronic ink Kindles are double the previous launch,” said Jeff Bezos, founder and CEO of Amazon.com. “And based on what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions more than we’d already planned.”

The company said that net sales increased 44-percent to $10.88 billion in the third quarter, compared with $7.56 billion in third quarter 2010. Yet despite the spike in pre-order sales, Amazon reports that net income actually decreased 73-percent to $63 million in the third quarter, or $0.14 per diluted share, compared with a net income of $231 million, or $0.51 per diluted share, in third quarter 2010.

Amazon expects to see fourth quarter net sales between $16.45 billion and $18.65 billion, or to grow between 27-percent and 44-percent compared with fourth quarter 2010. Operating income (loss) is expected to be between $200 million and $250 million, or between 142-percent decline and 47-percent decline compared with fourth quarter 2010. This may be due to Amazon’s investment in its own growth and in the Kindle Fire tablet.

Tuesday Amazon offered numerous highlights that transpired over the third quarter including the Kindle Fire announcement, launching the French Amazon Kindle Store, its licensing agreement with 20th Century Fox and PBS for Amazon Prime, launching a Spanish version of Amazon and the addition of new features to its Amazon Web Services.

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