Amazon Wows With $1.6B Q1 Profits

Raising annual Prime fee for first time in four years
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Amazon reported profits of $1.6 billion in the first quarter of 2018, a year-over-year increase of 121 percent.

Net sales, meanwhile, increased 43 percent to $51 billion in the period, ended March 31, compared with $35.7 billion in the prior-year period. Operating income rose to $1.9 billion, up 92 percent from $1 billion in Q1 2017.

Both of Amazon’s North American sales and its AWS segments experienced strong growth in the period. Its North American retail segment accounted for $30.7 billion of its net sales (up 46 percent year over year), while the AWS segment accounted for $5.4 billion (up 49 percent).

As is par for the course for Amazon, the retailer highlighted its most recent activity in its earnings announcement, including its renewed partnership with Best Buy, its new Echo Dot and its Ring purchase.

On a subsequent earnings call with analysts, chief financial officer Brian Olsavsky also revealed that the annual Prime membership fee would increase, to $119 from $99.

Amazon last raised the fee, which includes free two-day shipping and access to its various content-streaming services, four years ago.

See: What Makes Amazon Prime Shoppers Tick

Watch: What To Expect At Prime Day 2018

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