Amazon Takes $170 Million Loss On Fire Phone Flop

Despite Amazon advertising the device on every doorstep and dropping the price under a buck, the company’s Fire Phone, companion smartphone to its line of tablets and TV streaming devices, failed to catch on with the public. Maybe it was the AT&T exclusivity, or the fact that it runs a customized version of Google’s Android operating system, without access to Google’s app marketplace.

Heck, over in the United Kingdom, you don’t have to pay a nominal 99 pence to get the Fire phone: it’s free with a new contract on Amazon’s exclusive partner in that country, carrier O2. The phone accounted for $170 million of Amazon’s $437 million loss last quarter.

“There are a lot of reasons it failed, but they key is that Amazon provided no good reason for consumers to buy it,” one analyst explained to CNET. It did have some pretty nice headphones, but you can buy those separately. No phone needed. With no clear advantages or compelling reason to buy the device, consumers just aren’t interested. Maybe the Amazon pop-up stores will pique their interest…but probably not.

Amazon takes $170M charge on Fire Phone [CNET]

by Laura Northrup via Consumerist