Amazon.com 3Q income soars on Kindle success

SEATTLE Amazon.com's sales and income soared in the third quarter, thanks in large part to the success of the Kindle e-reader.

Amazon.com reported that net sales increased 28% to $5.45 billion in the third quarter, compared with $4.26 billion in third quarter 2008.

Net income increased 68% to $199 million in the third quarter, or 45 cents per diluted share, compared with net income of $118 million, or 27 cents per diluted share, in third quarter 2008.

“Kindle has become the #1 bestselling item by both unit sales and dollars – not just in our electronics store but across all product categories on Amazon.com. It’s also the most wished for and the most gifted. We are grateful for and energized by this customer response,” said Jeff Bezos, founder and CEO of Amazon.com. “Earlier this week we began shipping the latest generation Kindle. Its 3G wireless works in the United States and 100 countries, and we’ve just lowered its price to $259.”

Fourth-quarter net sales are expected to be between $8.125 billion and $9.125 billion, or to grow between 21% and 36% compared with fourth quarter 2008.