Amazon.com outperformed Wall Street expectations as the company’s share price surged by 15% due in no small part to the phenomenal success of the Kindle Fire tablet.
The world’s largest internet retailer increased their market value by more than $10 billion as the company found the form it hit 3 or four years ago; when everything they touched turned to gold.
Among Amazon’s most important ventures is the release of the Kindle Fire which is scrapping it out with Apple at the top of the tablet market. Supremacy in this area would see the victorious company gain a stranglehold on the market shift from physical media like books, DVDs, video games and CDs, to digital versions of this content.
The company were sharp to note that during the first quarter of this year; nine out of 10 of the top-selling products on Amazon.com were of a digital nature, including Kindle e-books, movies, music. Amazon has also been busy selling mobile apps.
Amazon’s recent success has been as a result of heavy investment in products like the Fire; which in turn has put pressure on the company’s profit margins so despite the heavy sales, Amazon’s Chief Financial Officer, Tom Szkutak, is warning against complacency.
And Ben Schachter, an analyst at Macquarie agrees with that Amazon shouldbe wary against taking its foot off the pedal. "One of the concerns with the shift from physical to digital has been whether Amazon will be able to compete they've done well in e-books, but now it looks like they're also doing well in other areas like video."