The online retailer’s second quarter results reveal a mighty profit tumble.
Amazon’s net income fell a whopping 96 per cent, the biggest drop the company has seen since it reached profitability a decade ago.
Profits dropped to $7 million, or one cent per share, compared with $191 million a year ago.
The drop wasn’t completely unexpected, as Amazon has been ambitiously spending over the last few quarters. Just earlier this week the company announced that it will set up a digital development centre in London, where it will employ hundreds of workers to build web services for smartphones, tablets and PCs.
Amazon has seen six ‘fulfilment centres’ open up to help speed up online purchase deliveries and bring down shipping costs. Company CEO Jeff Bezo has said that the online retailer plans to open up 12 more of these throughout 2012.
Want to receive up-to-the-minute tech news straight to your inbox? Then click here to sign up for the completely free PCR Daily Digest and Newsflash email services. You can also follow PCR on Twitter and Facebook.