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It's not ridiculous. Amazon retail operates on very thin margins. AWS does +$7B a quarter, $25.7B for 2018. Sources: https://qz.com/1539546/amazon-web-services

by romtx 7y ago

It's not ridiculous. Amazon retail operates on very thin margins. AWS does +$7B a quarter, $25.7B for 2018. Sources: https://qz.com/1539546/amazon-web-services-brought-in-more-money-than-mcdonalds-in-2018/ https://qz.com/1539546/amazon-web-services-brought-in-more-m... https://www.zdnet.com/article/in-2018-aws-delivered-most-of-amazons-operating-income/ https://www.zdnet.com/article/in-2018-aws-delivered-most-of-...

criley2 7y ago
Did you check your own source? Because I was using quarterly for both numbers, and their net sales of merchandise was over $200B (global) in 2018, meaning their net sales were almost 10X higher on products than AWS. Since it's a 10:1 margin, I continue to claim that it's ridiculous to think that AWS > selling physical products in terms of revenue. In terms of income, however, it's not, they make a lot more on services than physical goods (as everyone not named Apple does)