Amazon.com, Inc. (NASDAQ:AMZN) No Longer Selling The Fire Phone

The internet based retailer Amazon.com, Inc. (NASDAQ:AMZN) has stopped selling its first smartphone, the Fire Phone, just a little over a year after its release.

The Fire Phone is no longer available in the UK. The Internet based retailer spoke with BT and said they had sold through their Fire Phone inventory.

The device was first released July 25, 2014 and was Amazon’s first try at the smartphone market. The smartphone, which was rumored to be under development for several years prior to its release, ran an operating system designed by the retailer, with apps available from their own Appstore, which also sold movies, music and TV shows.

The reception to the Fire Phone was not so great. If you look at the hardware, it was pretty decent. The device came with a 4.7 inch IPS LCD Gorilla Glass 3  touchscreen display, 13 megapixel camera, 2 GB of RAM and options between 32 GB and 64 GB of internal storage.


Amazon PhoneAmazon tried to stand out with features like Dynamic Perspective, Mayday, and Firefly. Dynamic Perspective gave users the option to navigate and access things faster while Mayday is a free, 24 hour customer support service for Amazon devices. Firefly uses the camera and microphone to identify objects that can be bought from the retailer. The phone also automatically backed up all the photos taken to Amazon’s Cloud Drive.

Like other Amazon devices, the phone was designed to provide users with other content from the retailer. Those who bought the phone had to buy apps from Amazon, which also wants you to spend money on the millions of products they have. It is the same thing other companies do with their phones.

The Internet based retailer has not revealed any numbers on the phone but many believe it did not have the same success as the Kindle e-readers.

Price Cuts and Market

The Fire Phone, which came with a free year of Amazon Prime, had its first price cut six weeks after its release. The device was cut to $0.99 from $199 with a two-year contract and from $650 to $449 unlocked. At the end of last year, the price dropped to $199 for the unlocked version. Another price cut came in April of this year, this time the phone dropped to $179. A few months later it dropped again to $130.

Senior Vice President of Devices David Limp spoke to Fortune and admitted that the price of the device was too high.

The smartphone market is not easy, with other giants releasing impressive phones every year. The iPhone and Samsung Galaxy are currently competing for the top spot and Amazon thought it could make it a three way race, but was never close.

Any Plans For a New Phone?

The Wall Street Journal recently reported that the retailer let go of the engineers who worked on the smartphone.

The company still makes a lot of devices and it wouldn’t be surprising to see them come up with a new phone, this time it will be different as there would be a new team of engineers working on it.

 




1 COMMENT

  1. For years,I have suggested Amazon becoming an MVNO and offering something like a “Prime Phone” or “Prime Plus” service for let’s say $150-$200 a year that included unlimited
    talk/text/500 mb data per month to subscribers on the smartphone in
    addition to current Prime features.The sales of the phone would then
    have the snowball effect of boosting the sale of Prime subscriptions as
    well as many of the other products Amazon sells.The amazon home page is
    one of the most prime selling spots in the world and I still believe
    the Fire Phone would be a big success if they did this.

    I think there is a huge market waiting for the company that will offer unlimited
    talk/text and at least 500mb data for $10 a month or less AND get it in
    retail stores like walmart/best buy (or on the Amazon home page if
    Amazon does this.)If amazon did this,it could take a large chunk of
    marketshare from apple and samsung.On the other hand, it also could be
    done by a company that offered ultra low cost service for apple and
    samsung phones as well.
    It seems obvious to me that the best way for
    an alternative OS to have any chance against android/iOS is to pair it
    with a low cost phone service.

    As of now I only pay $10 a month combined for my home phone service and mobile phone service using a combination of magicjack and tracfone.
    -Magicjack GO for home phone service for $3/month(includes magicApp)
    -MagicApp for free unlimited mobile talk/text over WiFi on android/apple smartphones tablets.Works on 3G/4G too.
    – limited tracfone cellular talk/text /data for $7/month for when WiFi is unavailable.I use the magicApp on an android tracfone.

    But many people won’t use my method for whatever reason.Many people are
    simply unaware of this method,find it to confusing or maybe they are
    waiting for one phone service to offer them this kind of value in a
    simpler way on one device with one plan that can be bought in a retail
    store and used immediately.Something with this kind of value that works
    out of the box without having to hopefully discover and download an app
    that most people don’t even know exists.

    I don’t think we have heard the last from amazon in the mobile phone area as it is WAY too
    important a device if you want to connect with consumers/customers.For
    some,the mobile phone is the only “computer” they use,or what they use
    90% of the time.When amazon unlocked the Fire phone and lowered the
    price the phone started selling very well as it climbed to the top of
    the best sellers list in the “electronics” category on Amazon.I think
    they could sell 2 or 3 models in different price ranges if they
    continued to match competing phones specs at lower prices.

    I expect to hear about a new Amazon phone and Fire TV device in the near future.

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