Amazon Delivers 39% Growth But It Is Slowing
Amazon has delivered a 39% increase in revenues over the same period last year but there is no mention of how well the Australian operation is doing.
One thing that the big US online retailer has tipped is that global growth could slow in coming months with new operations such as Australia tipped to still suck up money as they build out the Australian operation.
Despite the concerns their stock jumped more than 2% in after-hours trade.
profits for the quarter came in at US$2.53bn in the three months to the end of June – more than 12 times last year’s profit.
Net sales in the next quarter are expected to be between $54B and $57.5B with growth set to be between 23% and 31% compared with third quarter 2017.
The latest gains were driven in part by strong sales at the firm’s lucrative cloud services division, Amazon Web Services, which were up nearly 50% year-on-year to $6.1bn.
Amazon is expected to account for roughly half of online sales in the US this year, according to research firm eMarketer.
Amazon is believed to be close to releasing the Fire TV Cube, a 4K Ultra HD streaming media player with Alexa that allows customers to control the TV with their voice in Australia.
Fire TV Cube uses multi-directional infrared technology, cloud-based protocols, and HDMI CEC to control compatible TVs, sound bars, cable and satellite boxes, and AV receivers.
During the period Amazon added new Alexa capabilities, including calendaring features, such as the ability to move meetings via voice; new information on current events like the Royal Wedding, World Cup, and NBA Playoffs.
The Alexa Skills store now offers more than 45,000 skills created by third-party developers, including entertainment and gaming skills like Jurassic World Revealed, Westworld: The Maze, Skyrim Very Special Edition, When in Rome, and Hotel Transylvania Stories. Additionally, customers can now use Alexa to control more than 13,000 smart home devices from over 2,500 unique brands.
Amazon also announced that Alexa is available on even more products via the Alexa Voice Service, including soundbars from Polk, headphones from Jabra; smart home devices from ecobee and First Alert; Windows 10 PCs from Acer, HP, and Lenovo; and select vehicles from BMW, Ford, and Toyota.
The Company also announced a new Amazon and Ring do-it-yourself home security system that offers professional monitoring for just $10 per month following their recent acquisition of Ring which is sold at both JB Hi Fi and The Good Guys.
Amazon reported that they had recently launched Prime in Australia, offering members unlimited free delivery on millions of local and international items, Prime Video, Prime Reading, Twitch Prime, and access to exclusive deals but there was no mention of how many subscribers the service has attracted.