Amazon issues profit warning despite 'biggest Christmas ever'

Online retail giant Amazon has announced a sharp fall in profits and warned about worse than expected results this year.

Net income for the three months to the end of December was $177m (£114m), down from $416m in 2010.

The fall came despite an increase in revenues during the period to $17.43bn, up 35%.

But the company warned that it may lose money during the first quarter of this year as it continues to invest.

However, Christopher North, Managing Director of says Christmas 2011 was very successful for the company - and that was due in part to sales of the kindle.

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