Apple Falls
July 25, 2007
Apple falls on initial iPhone activation numbers:
Shares of Apple Inc (AAPL.O: Quote, Profile, Research) fell 4 percent on Tuesday after AT&T Inc (T.N: Quote, Profile, Research) issued initial subscriber numbers for customers of Apple’s iPhone that were below analyst estimates.
Amazon net jumps on strong U.S. sales
July 25, 2007
Amazon net jumps on strong U.S. sales:
Amazon.com Inc. posted quarterly net profit on Tuesday that more than tripled
Why?
Chief Financial Officer Tom Szkutak attributed part of the U.S. sales growth to Amazon Prime, a discount shipping program that charges $79 annually for unlimited two-day shipping.
“Subscribers are increasing, customers are buying more, it’s becoming a more meaningful part of our overall units. It’s certainly impacting the growth you’re seeing this quarter,” Szkutak told reporters during a conference call.
Third-party business represented 30 percent of worldwide sales in the quarter, Amazon said. With these sales, Amazon takes a transaction commission but avoids inventory and fulfillment issues, thereby increasing profit margins.
