Amazon.com is likely to face a steady decline in profits -- by as much as fifty percent -- during the third quarter of this year, according to a latest market forecast.
According to market experts, this steady decline in the company’s profit could be the eventual outcome of the new Amazon Kindle e-reader line up weighing on margins a bit more heavily than anticipated earlier.
The retail giant is likely to post a net income of $115.8 million for the third quarter -- 50 percent less than what it was a year back during the same quarter, according to a report by Bloomberg.
In the previous year’s Q3, earnings of the company stood at around 51 cents a share. In comparison to that, the figure, exactly one year later could come down as low as 24 cents a share.
In addition, the company is likely to find itself under more financial pressure as it sells the newly released Kindle Fire tablet at a loss. It is important here to note that the Kindle Fire hadbeen speculated by many as the next big thing in the global tablet arena after the Apple iPad.