Amazon.com, Inc. (NASDAQ:AMZN) was one of many major companies that recently made their financial details public for the June ending quarter, joining the likes of Apple, Inc. (NASDAQ:AAPL), Nokia Corporation (NASDAQ:NOK) and Google, Inc. (NASDAQ:GOOG). We’re not surprised that the company headed by Jeffrey Bezos had a very interesting Q2 2012 in terms of numbers.
The Kindle Fire tablet computer remained the main driver of income for the online retailer. It is a known fact that the tablet’s profit margins per unit are virtually nonexistent, as Amazon relies mainly on its “ecosystem”, or its premium content, to generate revenue through the tablet.
Based on the numbers revealed at the earnings call, Amazon had a mixed second quarter of the year. While it registered $12.83 billion worth of sales in Q2 2012, net income was only at $7 million, a sizeable drop of 96 percent on a year-on-year basis.
As Amazon had acquired Kiva Systems in March for $775 million, this was a significant contributor in the drop of net income. But more telling was the $272 million “unfavorable impact” caused by year-on-year fluctuations in foreign exchange rates.
As always, Amazon was silent on the Kindle Fire’s actual sales in Q2 2012, but different analysts believe that the new iPad’s success is the main reason for the Kindle Fire’s lack thereof in the June quarter. The success of Google, Inc.’s (NASDAQ: GOOG) Nexus 7 also played a role here, as it shares the same price point as the Kindle Fire, at $199 for the 8 GB version.
We’ll be observing closely the possible financial impact of Amazon’s next generation of Kindle Fire tablets once released – rumor has it that six of them will be launched before the year ends.