Pay no attention to the headline of their press release, Amazon had a bad quarter. They’ve been warning about dipping into the red for a few quarters now and have narrowly avoided it each time. No more.
The company lost $274 million on sales of $13.81 billion. Yes, you read that right. Sure, a large part of it was due to the disaster that is the LivingSocial deal (a loss of $169 million as part of a goodwill write-down), but they still lost over $100 million when you take that away.
I’m sure Apple is really regretting not selling the iPad mini at Kindle Fire prices right now.
See what happens when you sell hardware at lost? Amazon sees it right now.