standard After Heavy Quarterly Losses Amazon Admits Fire Phone Pricing was Wrong

Amazon-Fire-PhoneFollowing a disastrous 3rd quarter loss ($544 Million), with further expected losses in Q4 2014; Amazon have officially stated that they made a mistake with the Fire phone. Although Amazon haven’t stated that the Fire phone itself was a bade idea, which mainly relies on people’s love for Amazon services to help them buy even more stuff, instead Amazon state that they got the pricing for the phone wrong.

The Fire phone launched at $199 on contract (with a year of Prime bundled for free), however just a few weeks after launch Amazon cut the phone’s price to free on contract, keeping the year of Prime bundled with. Even that however was too little too late to salvage the phone, as it’s cost Amazon nearly $170 million in inventory space. Given how much Amazon love their clean organized storage spaces, and efficient workers it seems to be quite the loss.

Let’s not forget that another factor leading to the Fire phone’s failure would probably be the At&t exclusivity agreement they signed, further narrowing the range of potential customers. Let’s see what Amazon will do next, will they follow ith an improved Fire phone 2.0, or chalk it down as a loss and start a Fire sale on the fire phone?

Via: GadgetsBoy


About the Author

Ali is a dental school graduate currently living in Amman, Jordan; born and raised in the US, a tech lover with a serious addiction to all things sweet. He is the co-founder of GeekOnGadgets, and a senior editor at our Sister site

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  • D Harries

    It goes to show, there is no correct way to sell a phone. Perhaps if they had no competition. It’s a tough market to crack. They could sell them at cost price, or give them away. Maybe people aren’t ready yet for the next phase of smartphone linked to Amazon always on shopping relentlessness.