Amazon has not been very successful with its Fire smartphone, so the next obvious move was to cut down the price. The giant online retailer has changed the price from $449 to $199 and hopes this will make people buy the Fire smartphone.
This is actually the second time the Amazon Fire smartphone’s price has gone down. The phone was initially launched on the market for $650 for the 32 GB unlocked version.
Amazon Fire smartphone was launched in July and unfortunately, failed to capture the interest of many people. The Amazon smartphone did not sell well, either.
Amazon announced in October that the company has lost more than $437 million in the third quarter of 2014. This was mostly because of the smartphone’s poor sales, which forced Amazon to take a $170 million charge.
Trying to help the sales a bit, the Amazon Fire Smartphone price was cut down for the first time in September. The phone was initially made available through AT&T for $200, if bought on a two-year contract.
Then, the 32 GB phone was only 99 cents. The price of the 64GB version of the Amazon Fire phone was dropped from $300 to $100.
Amazon Fire has gone through many challenges to attract its customers and one of those challenges was that it coincided with Apple’s iPhone 6 in July. Also, around the same time Samsung’s Galaxy Note 4 was being released.
Another factor that kept Amazon Fire from selling was its exclusive availability with AT&T which limited its accessibility in the US. The Amazon phone is only compatible with GSM networks used only by AT&T, excluding the networks used by Sprint and Verizon subscribers.
A tech analyst spoke of the Amazon bad luck in selling its Fire smartphone:
“There are a lot of reasons it failed, but the key is that Amazon provided no good reason for consumers to buy it.”
With the Fire phone, Amazon wanted a tool with which the shoppers could buy from Amazon easily. The good news is that now the Fire phone comes with a full year Prime membership, which otherwise would cost $99.