Amazon.com, Inc. (NASDAQ:AMZN) came out with its second quarter results on July 24, after the bell. The company surprised the Street with a net loss of $126 million, or $0.27 per share, compared to a loss of $7 million, or $0.02 per share it posted for the second quarter of 2013. The company’s revenue in the second quarter increased to $19.34 billion, up 23% on the year. The company has given a similar outlook for the third quarter, in which it expects an increase in revenue, but operating loss could increase to as much as $810 million.
Amazon.com, Inc. (NASDAQ:AMZN) is also toying with different products and services, the impact of this was discussed in detail on today’s edition of CNBC’s ‘Tech YEAH!’ In which USA Today’s Personal Tech Columnist, Ed Baig, talked about how the company’s product plans will be affecting its users.
Mr. Baig does not agree with rumors that Amazon will raise further raise the subscription price for its premium service from the current price of $99, despite the rumors that it might happen.
“I don’t think it’s going to go up further any time soon, although there were rumors before they went to $99 that they may go to $119, so at some point that will likely happen, but you they (consumers) got grief even going up to 20 bucks so I don’t think that’s going to happen anytime soon,” Mr. Baig said.
Mr. Baig feels that Amazon.com, Inc. (NASDAQ:AMZN) has come too late in the Smartphone market with its Fire Phone and because of it, the company had to do something different. Which it has tried to do by adding a 3D feature called ‘Dynamic Perspective’ and a scanning feature called ‘Firefly’. Mr. Baig also doesn’t feel that the new subscription-based, book reading service from Amazon.com, Inc. (NASDAQ:AMZN) is going to affect the company’s revenues from selling books.
“I doubt it, I mean you are talking about a service 10 bucks a month, you could read an unlimited amount of books. 600,000 books are in the catalogue plus some audio books, but it’s not necessarily the 600,000 books that you or I might want to read,” Mr. Baig said.