Amazon announced their latest financial results yesterday, the company made a larger loss than expected, and we also got to find out how the new Amazon Fire Phone is doing.
It looks like the Amazon Fire Phone is a failure for the company, as during their earnings calls, the company announced that it was taking a $170 million write down related to their first smartphone.
The reason for the write down on the Amazon Fire Phone is that the company over committed on the device, and produced a lot more handsets than they actually sold.
Amazon is currently holding inventory of the Amazon Fire Phone worth a massive $83 million, this is a significant amount of stock of the device, and confirms the rumors that Amazon have had trouble selling the device.
Just two months after the launch of the handset Amazon reduced the price of the device to just 99 cents when you take out a new contract.
Personally I think that Amazon could have sold more handsets if they had gone about selling them differently, the device is available with AT&T in the U.S. and O2 in the UK, in order to buy the device you have to take out a new contract.
If Amazon had offered their smartphone unlocked without a contract they may have sold more devices, we wonder what they will do with all that stock of the handset they are holding.