It is found quite odd how consumers can increase by driving up sales yet numbers appear to show profits are on a downward slide. It would seem to appear something quite odd has taken place within the doors of Amazon and this activity raises many questions. Before making any guesses, the quarterly report of Amazon.com should be reviewed as it brings everything into a clearer view. The 4th quarter clearly reported profits were down 45% yet the consumer sales were up 22%.
It is beginning to appear the reason for this drop in profit margin is due to what Amazon has impressed so many readers with, the Kindle. Why this item is so loved by consumers is for the simple fact it holds electronic books (aka ebooks) and many of them. There are Kindles with hard drive sizes that can hold movies and music. Amazon has various types of the Kindle available to choose from so everyone has an option on what he or she would want.
The reason for drop in profit yet rise in sales is due to the high charge that consumers adore the technology Amazon has created. Another factor is due to the technology it has allowed consumers to be money budgeted, as they no longer need to spend large amounts on printed books in hardback cover; they can pay a lower price for e-books and place them right onto the Kindle instead.