In Q2 2017, Amazon’s revenue fell as there is there is a decrease in price in the company’s AWS web hosting and cloud computing wing. The company, US revenue from the outside, is also one of the reasons for the reduction of income.
Amazon Said that Amazon Echo and Alexa would soon Arrive Indian Market:
The Amazon revenue and the operating expenses are $37.96 billion and $37.33 billion respectively. When we compare the income with the previous year, they grew by 25-28%.
Olsavsky said that the Alexa and Echo are the Amazon’s voice, recognition-enabled assistance. As per the reports, they will soon come to India. They stated that they continue investing mainly in the fulfilment capacity, logistics services, digital video. Amazon focuses primarily on the Echo and Alexo, Echo devices and its Alexa platform present in India.
As per the ET reports, Amazon employees and some analysts already entered the India, and they started testing them. By the end of this year, 2017 they will release the devices in India.
Investment in India:
Olsavsky stated that their investments in India are increasing slightly to improve their business. He officially reported that they invested over Rs 130 crore in Amazon Pay. They are going to spend about $500 million in FDI in online food retail, Rs 341 crore on their wholesale business. Overall, they got ready to invest over Rs 1680 crore in India.
They officially stated that they would continue investing in India. Amazon had the best people in their business.
Amazon tied up with the ClearTax for achieving the seller compliance. It will send out the seller who do not update their GSTN with the company.
The increase in the Prime Video Investments:
Amazon’s Prime Video Service will have more investment this year 2017. During the last year 2016 and the second half of 2015, they noticed the significant step up. Now, they are planning to increase the video revenue that they spend during the Q3, 2016.
During the first year deal, the Prime Video got the global rights to the Salman Khan’s upcoming films. Shah Rukh signed the Netflix deal, and it is the closest comparable deal.
Mint is the analyst, and he said that the cost of the Salman Khan film’s digital rights is about Rs 65 crore. However, the price of the first five-year deal is about Rs 600 to 800 crores. The deal between the Aamir Khan and Netflix is about Rs 500 crore.
In 2016 Q2 report, the net sales got increased 25% and reached $38.0 billion. The sales in 2016 second quarter are about $30.4 billion.
The net income in the Q2-2017 is about $197 million. Last year in 2016 it is $857 million.