Amazon loses $437M in Q3, $170M due to Fire Phone failure
Amazon posted its Q3 earnings for this year – the company achieved $20.58 billion revenue which is a 20% increase compared to last year’s Q3 when it pulled in $17.09 billion.
The company’s operating loss tips the scales at $544 million, though, a whopping increase compared to last year’s Q3 loss of just $25 million. Net loss is $437 million.
Amazon’s results are a direct reflection of the company’snot having the best market performance. The company was forced to make a writedown of $170 million to cover costs related to inventory and suppliers.
Perhaps part of the reason the Fire Phone hasn’t taken off is the crowded market or perhaps the fact that Amazon agreed to make its first smartphone an(aside from Amazon’s own retail chain), which has hurt other companies in the past (here’s looking at you, Nokia).
The Fire Phone also launched at an ambitious $199.99 price with a contract but then quickly went down to $1.
On a more positive note Amazon is rolling out a redesign of its US website with a huge carousel gallery and dark grey top bar, which will hopefully help it make it back up in the black.
The departments dropdown is no longer dropped by default and menus have been rearranged slightly.
Amazon will give users the option to get back to the “old” design too.
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