Amazon has announced its fourth quarter financial results that ended 31 December 2012.
Despite not meeting analysts estimates of $22.3 billion in sales, Amazon’s revenueÂ increased 22% toÂ $21.27 billionÂ in the fourth quarter, compared withÂ $17.43 billionÂ in fourth quarter 2011.
Net income decreased 45% toÂ $97 millionÂ in the fourth quarter, orÂ $0.21Â per diluted share, compared withÂ $177 million, orÂ $0.38Â per diluted share, in fourth quarter 2011.
For the second year in a rowÂ Amazonâ€™s Kindle Fire HD tablet was the most popular item for customers worldwide.
Amazon founder and CEO, Jeff Bezos says of the results that Â â€œWeâ€™re now seeing the transition weâ€™ve been expecting. After 5 years, eBooks is a multi-billion dollar category for us and growing fast â€“ up approximately 70% last year. In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5%. We’re excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection.â€
For the first quarter 2013, the e-commerce giant is projecting net salesÂ to fall between $15 billion and $16.6 billion, representing growth of 14% to 26%.
Amazon also recently launched AutoRip,Â a service that gives customers free MP3 versions of CDs purchased on the site.