Meanwhile Amazon, in its statement, reported that its profit shrank in the recently ended quarter despite surging sales as it poured money into growth, said that net sales increased 25 per cent to $38 billion when compared to the same period last year, but that profit plunged 77 per cent from a year ago to $197 million. That's why Amazon projected operating income in the current period ranging from a loss of US$400 million ($534m) to a gain of US$300m.
With $16 billion a year in sales, AWS is the world's largest cloud computing venture. Amazon's subscription services revenue, which is mostly from Prime memberships, rose 51 per cent to US$2.17 billion in the second quarter - faster than 49 per cent in the previous quarter.
Amazon Prime Video recently launched Inside Edge - the first of its planned 18 Indian original series. Amazon's stock has risen 39 per cent this year, and earlier on Thursday chief executive officer Jeff Bezos briefly surpassed Microsoft co-founder Bill Gates to be the world's wealthiest person, before falling back to the No. 2 spot as Amazon's shares declined.
Investors have put increasing faith in chief executive Jeff Bezos to keep Amazon growing by entering new categories such as groceries and appliances, and expanding overseas.
Amazon's stock has gained 39 per cent this year.
"We are continuing to invest in businesses that will achieve four goals ..."
Amazon dominates e-commerce in the United States with its US$99-a-year Amazon Prime subscription.
Amazon India did not reply to ET's specific queries on its parent company's results and focus on India.
Amazon did not wait until the second half to pick up the pace of spending. Amazon doesn't break sales or losses from individual markets. Olsavsky said, "We're very hopeful with the progress we've made with sellers and customers alike in India". "Amazon seems to be looking for long-term leadership in India and is looking to be a one-stop place for customers for everything from e-commerce, grocery, as well as in the artificial intelligence space (for Echo and Alexa)". Flipkart is also likely to get further fund infusion from Softbank.
Singhal, however, said it was too early to determine the impact of Echo and Alexa coming to India. Apart from India, the two analysts said, Amazon is also focusing aggressively on Southeast Asia and the Middle East.