While Amazon doesn’t release exact sales figures on their devices, rumors have suggested that their first foray into the phone market has failed to catch on with consumers, only selling 35,000 units in their first month based on data analysis by Chitika and comScore.
Today’s move certainly lends credence to those rumors, as the Amazon Fire phone has dropped approximately $200 both on and off contract since its July 25 launch. The 32GB Fire phone will now cost just 99 cents on contract and $449 off contract.
One of the major surprises with the Fire phone was the fact that Amazon didn’t try to do something innovative with their pricing. If they had, perhaps this story would have gone much differently. Remember that it does includes a year of Amazon Prime membership for new or existing customers, which is a $99 value and a worthwhile bonus for the Amazon diehards that would be likely to buy the Fire phone in the first place.
Price was hardly the only concern though as the AT&T exclusivity, lack of access to the Google Play Store and uninspiring hardware were all working to stack the deck against the Fire phone.
With the current rating for the phone sitting at a reasonably poor 3.2 out of 5 stars on Amazon and most of the advertising for the phone seemingly gone, it’s unlikely that this will turn around the fortunes of the first generation Fire phone.
The better question is whether there will be a second generation of Fire phone, and if so, can Amazon make it more appealing to consumers or is their modified flavor of Android just not suited for a phone?