Amazon Fire Phone didn’t receive the response the company expected it to. The company reported a net loss of $437 million, out which $170 million is for the Fire Phone. Amazon even mentioned they are holding Fire Phone inventory worth $83 million which is still unsold.
Amazon Senior Vice President of Devices David Limp told in an interview with Fortune that the company didn’t price the handset right.
“We didn’t get the price right,” Limp admitted. “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.”
Amazon priced the Fire Phone at $199 for the 32GB version, while the 64GB version costed $299. Amazon later reduced the price of the 32GB version to 99 cents on-contract, basically due to the low demand.
It seems the company will continue to work on the smartphone. Limp said the first Kindle wasn’t a big success, but the later versions of the tablets received their fair share of success. He didn’t mentioned anything about future releases, but mentioned the company will “keep iterating software features to get it better and better.”
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