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Amazon’s operating income down 40% YoY on the back of India investments

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Amazon Inc. reported net income of $256 million for the quarter ended September 30, 2017 (Q3 2017), marginally up from a net income of $252 million in the corresponding quarter last year. The company's operating income, however, was down 40% year-on-year (YoY) to $347 million for the quarter from $575 million in Q3 2016. This is significant because in the current quarter Amazon's operating income also includes income of $21 million from Whole Foods Market, which it had acquired on August 28, 2017. While answering an analyst question regarding losses in the international retail segment, during the company's earnings call, Amazon's CFO Brian Olsavsky said that it was primarily due to the investments in India. "We launched Prime there (India) a year ago, if you remember, and we've had more Prime members join in India than in any other country in the first 12 months. We have free shipping on 10 million items there and we're continuing to add benefits - Prime Video, Amazon Family." He also mentioned that they're expanding both Prime Music and Amazon Business in India. "So, a lot of positive momentum and investment going on in India, very pleased with that. We also recently announced Echo and Alexa are available in India." Currently, Amazon’s total investment commitment in India stands at $5 billion: the $3 billion announced in June 2016, plus the $2 billion investment announced back in July 2014, which the company has already completed in phases over the past two years. It has also been investing heavily in…

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