Amazon on Thursday said it swung to a loss in the third quarter, as the Internet retail titan was hit by higher operating costs and a big writeoff, in results sharply below Wall Street expectations.
Amazon reported a loss of US$274 million in the quarter, compared with a profit of US$63 million in the same period a year ago.
Excluding special items, the loss amounted to 23 cents a share, worse than forecasts of a loss of US$0.08 per share.
Revenues in the period rose 27 percent to US$13.8 billion, but fell short of analyst forecasts of US$13.9 billion.
The disappointing results showed a sharp rise in operating expenses including cost of sales, marketing and technology.
Amazon also reported a writedown of US$169 million for its stake in online deals group LivingSocial, under accounting rules requiring a charge against earnings to reflect the lower estimated value of the company.
Founder and chief executive Jeff Bezos said Amazon remained committed to delivering value to customers through its retail marketplace, digital content and its Kindle tablets.
“Our approach is to work hard to charge less. Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point,” Bezos said.
“And our approach is working — the US$199 Kindle Fire HD is the No. 1 bestselling product across Amazon worldwide,” Bezos said.
“Incredibly, this is true even as measured by unit sales,” he said.
Amazon has ramped up its efforts in the tablet segment, as part of a move to keep customers in the company’s orbit for ebooks, music and other forms of digital content, challenging the popular iPad from sector leader Apple.
Amazon maintained that its new large-format Kindle Fire HD, which hopes to compete with the large iPad, “has 193 percent more pixels,” superior audio and costs less than its Apple rival.
The company said the seven-inch Kindle Fire HD has similar advantages over the iPad mini unveiled earlier this week by Apple.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB