Amazon blames price for Fire phone’s failure, doesn’t plan to quit

Amazon Fire PhoneDuring Amazon’s Q3 earnings call, it was revealed that the company has around $83 million worth of Fire phones lying around in the warehouses and the phone was overall a failure. Now, Amazon Senior Vice President of Devices David Limp has come out and blamed the pricing as the reason for the Fire phone debacle.

According to Limp, Amazon erred in the pricing of the smartphone. “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,” he told Fortune in an interview.

Limp added that the sales of the Fire phone have been better since the price-cut last month but the state of inventory shows that sales are still not that great.

Despite the failure, the e-retail giant doesn’t plan to quit the smartphone space and is in the industry for the long haul. While Limp did not explicitly state about the second-generation Fire phone, we expect to see the Fire phone 2 or something later next year.


Post Author: Gaurav Shukla

Gaurav Shukla is the editor of AndroidOS.in. If you'd like to reach him, drop an email at 'gaurav@androidos.in' or connect with him on Twitter (@gauravshukla).

1 thought on “Amazon blames price for Fire phone’s failure, doesn’t plan to quit

    kaushik

    (November 1, 2014 - 8:34 pm)

    the sole aim of the phone was to act as phone as a gateway to amazon, which it did. amazon then tried to force it down user’s throat which nobody liked ending in the phone becoming a flop. as said by amazon themselve, pricecut didn’t change the state of the unsold stock so definitely price is not a factor rather the whole concept was flawed.

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