Who Says Amazon's Margins Are Rising?

Here's what investors can expect to hear during Amazon's (AMZN) 2nd quarter conference call next week:

1.  Low prices caused margins to be low.
2. Q&A will have 793 occurrences of "you know" from Szkutak.
3. Increased product mix caused margins to be low.
4. No comment about tax litigation.
5. Low prices caused margins to be low.
6. Very secretive about Kindle unit sales but listeners are told it's a huge success.
7. Goal is to satisfy customers as a "customer-centric firm".
8. Low prices caused margins to be low.
9. Bezos wakes-up just prior to last question.
10. Amazon Prime caused margins to be low.

Using Amazon's own midpoint guidance, we should expect second quarter operating margins to come in around 3.52%. This means Amazon's margins are eroding even further.