Cost of sales hit Amazon.com

<p>Amazon.com founder and c.e.o. Jeff Bezos has said that the company plans to reduce its spending on technology after a rise in the cost of sales led to a fall-off in operating profits at its businesses, including its international websites.</p><p>Sales increased 22% to $2.14bn in the second quarter to 30th June 2006, but operating income decreased 55% to $47m, compared with $104m the year earlier. </p><p>Amazon.com blamed the decline on technology and content investments, and lower prices including free shipping and Amazon Prime. The group was also hit buy a $20m cost from the termination...

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