The Amazon Fire Phone was a dud based on the fact that company took a $170 million hit because of it. Pricing was probably the biggest complaint of the phone, which was $199 (32 GB) on a two year contract. Senior Vice President of Devices David Limp told Fortune, “We didn’t get the price right. I think people come to expect a great value, and we sort of mismatched expectations. We thought we had it right. But we’re also willing to say, ‘we missed.’ And so we corrected.” That correction came in September, when the price came down to 0.99 cents on the same two year contract.
Sales did increase, but seriously? The Fire Phone was never going to be a success because it offered nothing compelling. Amazon has done well with tablets, but they aren’t as personal as a smartphone is. When people buy a smartphone on contract, they want to buy something from a reputable company. Amazon is a reputable company, but not for smartphones.
Let’s just hope that we never see a Fire Phone 2. Stick to what you do best Amazon and that is offer merchandise at a great price with fast delivery.
source: Fortune
Come comment on this article: Amazon exec admits Fire Phone pricing was too high, but it was more than that
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