The Strategist

Amazon: holiday season 2016 is the best in the company's history

12/28/2016 - 14:25

US Inc., the world's largest online retailer, announced that it has shipped more than 1 billion products worldwide during this Christmas and New Year's holiday season. The company says the holidays have already become the best in history.

Robert Scoble
Robert Scoble
Head of the company’s global consumer products division, Jeffrey A. Wilke, commented that intelligent voice assistant Amazon Echo and its smaller version Echo Dot were the best sellers. "In spite of our efforts and an increase in production, we still have problems with their supplies" - said the top manager.

Sales of Echo were 9 times higher than in last year, the company stated. Amazon did not disclose data about comparable sales compared with a year earlier.

At the moment, the company presumably sold about 4-5 million devices with in-built Echo voice assistant, which answers to name Alexa in 2016, says Morningstar. Echo can follow various orders, from music playback to activation of Christmas garlands.

More than 72% Amazon customers made purchases via mobile devices, the company added.

In III quarter 2016, Amazon significantly increased its net profit.

The company's net profit in July-September amounted to $ 252 million, or $ 0.52 per share, compared with $ 79 million, or $ 0.17 per share, for the same period a year earlier. However, the result was worse than expectations of experts. Analysts polled by Thomson Reuters, on average, had forecast net profit of the company at $ 0.78 per share.

Amazon's revenue in the last quarter increased by 29% to $ 32.7 billion, compared to forecasted $ 31-33,5 billion.

Operating expenses of the retailer rose by 29%, almost reached level of revenues and amounted to $ 32.1 billion. This is yet another confirmation that Amazon is investing the bulk of its revenues in development of new products and operations.

Shipping costs grew by 43% to $ 3.9 billion. In August, the company announced its intention to acquire an extensive fleet of aircraft for express delivery of goods, leased its first cargo plane, Boeing 767-300, from Atlas Air company.

According to Amazon’s own forecast, the company's revenue in the current quarter, which includes the Christmas holiday season, will number $ 42- $ 45.5 billion. Consensus forecast of experts is $ 44.6 billion.