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You are hereNewsAmazon profits fall

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Amazon profits fall

Some investors are worried by Amazon's strategy.

26 October 2011 | Category: Electronics

The online retailer has seen profits drop by 73% in their last quarter after heavy investment in their tablet PC.

Amazon has spent heavily on developing their new Kindle tablet, which is seen as a direct competitor to the Apple iPad. Its believed that the Kindle is being sold by Amazon at a loss in an attempt to saturate the market with their device.

The long term goal is to see a payback on their investment with the sales of digital content through their device. However some investors believe its a risky strategy signaled by Amazon shares dropping overnight after news of the profits drop.

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