Amazon reports a wider-than-expected loss in the third quarter, and gives a disappointing holiday forecast. Net loss for the quarter was $437 million, or 95 cents a share, far steeper than the loss of 76 cents a share analysts were expecting. Revenue jumped 20% to $20.6 billion but was also short of expectations. Amazon expects holiday quarter revenue of $27.3 billion and $30.3 billion, below analyst expectations of $30.9 billion. The 7%-18% rise compares with 20% a year earlier. One cause is its launches of new product lines like the Fire phone, which needed a steep price cut after launch – it took a charge of $170 million related to ‘inventory evaluation and supplier commitment costs’ for Fire, and has about $83 million of Fire inventory at the end of the quarter.
Debuts $99 Kindle Fire HD 6
Amazon announces the $99 Kindle Fire HD 6. The six-inch tablet can be pre-ordered now, with US deliveries excepted to ship next month. The release dates for the UK and Australia are not being revealed at this time. The tablet comes in several colors, and with a six-inch screen it is one of the smallest tablets currently available. It has a 1,280 x 800 full-HD resolution screen (252 pixels per inch) and comes with 8GB of memory. A 16GB version is also available for $119.