Amazon’s Profits Soar on KIndle’s Popularity

Posted 10/23/2009 at 2:40pm | by Bart Salisbury

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Brick & mortar stores may be struggling, but the Internet is still printing money for some online retailers. Count Amazon among those who won big in the 3rd quarter of 2009, with a whoppoing 62 percent jump in profits. Amazon chalked-up $5.45 billion in sales during the quarter, an increase of 28 percent from the third quarter in 2008, with a net income of $199 million. Investors took the news well, bumping up the price of Amazon’s shares some 15 percent to $170.07 in after-hours trading.

“Kindle has become the #1 bestselling item by both unit sales and dollars – not just in our electronics store but across all product categories on Amazon.com. It’s also the most wished for and the most gifted. We are grateful for and energized by this customer response.” said Jeff Bezos, founder and CEO of Amazon.com.

In response to new competition in the e-book marketplace, Amazon has reduced the price of its new 3G Kindle to $259, and has announced the the free application “Kindle for PC” to widen the reach of its e-book offerings.

Image Credit: Amazon, U.S. Treasury