Amazon to make a loss despite Kindle

Internet retailer Amazon has warned of a possible $200m operating loss for the first quarter of 2012 despite reporting that sales of its ebook reader Kindle increased by 177% over the nine-week Christmas period.

Amazon said Q4 and the full year's sales were up, but profits fell. Its prediction that first quarter profits could be 167% lower than last year looks likes the company is in freefall.