Why Amazon's Troubled Fire Phone Failed to Sell

Amazon's Fire Phone, which the cloud retailer launched earlier this year with an exclusive partnership with AT&T, was at the time the big news story in mobile. It was Amazon's first smartphone launch. It included several features smartphone buyers typically won't find in a mobile handset. And Amazon pushed it as the next big thing in smartphones, capable of taking on the likes of Apple's iPhone and Samsung's line of Galaxy devices. However, it appears the Fire Phone has failed to catch on in the crowded market. Amazon on Oct. 23 announced that it would take a $170 million charge to write down the costs associated with the Fire Phone. Furthermore, Amazon reported that it had $83 million worth of unsold Fire Phones on hand at the end of the third quarter, demonstrating just how poorly the device was received compared with the iPhone 6, which Apple has called the biggest iPhone launch in history. Naturally, Amazon hasn't gone into detail as to why the Fire Phone has failed to turn on buyers. But that hasn't stopped analysts from chiming in on what might be going on. This eWEEK slide show shares some views on what went wrong with the Fire Phone. - See more at:

The Pricing Reflects Demand Issues

When the Fire Phone launched, it was available for $200 with a two-year contract. Since then, prices have been plummeting. In just two months, AT&T started offering the device for 99 cents with a two-year deal, and O2, the U.K.-based network running Amazon's handset, is offering it for free. So, those who are looking for a deal will at least find one in the Amazon Fire Phone.