Amazon has joined Apple as another tech company surging in the financial crisis, reporting a 24 percent increase in profits in the quarter ending March 31.
The company’s first-quarter revenue climbed 18 percent to $US4.89 billion, with cost-conscious consumers jumping online seeking competitive product prices.
According to some analysts, Amazon has benefited from the downturn, with their rivals Borders struggling to retain customer interest. Turbulence at rival site eBay is also driving traffic to Amazon.
According to the company, consumers are seeking out electronic goods and general merchandise with sales up 38 percent.
“Brick-and-mortar companies are going bankrupt and going out of business altogether and that is helping Amazon gain market share,” said JPMorgan analyst Imran Khan.
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