Friday, July 26, 2013

Prices Amazon Kindle and fight for expansion takes a loss in purchasing - Computer Week

Photo: Amazon.com

expensive expansion has the world’s largest online retailer Amazon brewed a small loss. In the second quarter, the U.S. company lost the bottom line is $ 7,000,000 (five million euros) after it could still enter a razor-thin profit in the same period.

Amazon takes the minus consciously: Using its own products such as the Kindle tablet, and predatory pricing in the range of the Group seeks to increase its market share steadily. The construction of new shipping centers are expensive.

The reward for their efforts: Amazon continues to grow rapidly. Sales rose 22 percent to $ 15.7 billion as the company announced at its headquarters in Seattle. Particularly hard to put this important business in the domestic market, while the expansion of the international branch lagged behind.

high investment, according to founder and CEO Jeff Bezos in the current quarter lead to an even greater loss of operating up to 440 million dollars. After Hours, the stock fell 1 percent. Since the beginning of the paper, but it has still gained about 20 percent and is near its all-time high of just over $ 309.

Germany Amazon had recently made headlines with strikes. Employees of the dispatch centers put down the work several times. They fight for higher wages, but Amazon does not want to give in to. The Company has eight dispatch warehouse and 9,000 employees in Germany. A ninth logistics center is currently being built.

now employs 97 000 people worldwide for Amazon, while temporary employees and contract workers are not even counted. A year ago there were only 69 100 people.

addition to the mail-order business and the digital entertainment with movies, music, and electronic books, Amazon is also one of the largest service providers in the Internet. The Group operates several data centers that offer cloud computing under the brand AWS. Well-known competitors are Apple and Ebay in digital content in stores and at online checkout. (AP / mb)

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