Amazon comes to its senses: Fire Phone is now (almost) free on contract


Since the very beginning, Amazon was criticized for asking $199.99 (on contract) for its Fire Phone. The handset simply isn’t on par with other devices at this price point, despite the fact that it comes with a few unique features, like the Dynamic Perspective UI, and Amazon’s Firefly service.

Last month, we told you that the Fire Phone had failed pretty badly. It looks like Amazon is now silently acknowledging this - by announcing a massive price cut. Starting today, September 8, the Fire Phone can be bought for just $0.99 on contract (this still includes a free 1-year subscription to Amazon Prime). The major price cut comes less than two months after the Fire Phone hit shelves across the US (being available only via AT&T and Amazon). Déjà vu?

At $0.99 on contract, the Fire Phone may actually be a good choice, though we must note that the handset is still an AT&T-exclusive. To find out more about the device, check out our Amazon Fire Phone review.

The failure of Amazon’s Fire Phone goes to show that, no matter how big a company you are, you can’t launch new products without thoroughly considering every other similarly-priced product that the competition is already offering.

source: Amazon

Related phones

Fire Phone
  • Display 4.7" 720 x 1280 pixels
  • Camera 13 MP / 2.1 MP front
  • Processor Qualcomm Snapdragon 800, Quad-core, 2200 MHz
  • Storage 64 GB
  • Battery 2400 mAh(22h talk time)

FEATURED VIDEO

31 Comments

1. Busyboy unregistered

Wow, they really screwed the first customers who paid 200$..

7. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

Which first customers?

8. Commentator

Posts: 3723; Member since: Aug 16, 2011

Duh, Amazon's board and executive team. Only, they probably will end up losing a lot more than just $200 for this debacle... Prove me wrong, Bezos! Prove me wrong!

10. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

Anybody found a Fire owner yet? I'm still looking.

18. Commentator

Posts: 3723; Member since: Aug 16, 2011

According to this, no more than 35,000 were sold in the first 30 days: http://www.theguardian.com/technology/2014/aug/26/amazon-fire-phone-sales-data

23. CX3NT3_713

Posts: 2363; Member since: Apr 18, 2011

And about 26,000 were returned

27. spasticpat

Posts: 113; Member since: Dec 18, 2012

Those kids in that TV commercial

26. tacarat

Posts: 854; Member since: Apr 22, 2013

Most retailers have price protection in place. It's just a matter of checking how to take advantage of it. A lot of credit cards do as well.

30. fzacek

Posts: 2486; Member since: Jan 26, 2014

Whoever was dumb enough to pay $200 for that POS in the first place deserves to be screwed...

2. John.v2

Posts: 45; Member since: Sep 08, 2014

Florin T. you hurt their sentiments mahn.

3. AJagtiani

Posts: 466; Member since: Apr 24, 2014

Amazon are stupid, and they know it. They'd be better off just producing tablets and exiting the smartphone market.

5. Commentator

Posts: 3723; Member since: Aug 16, 2011

Yeah, they just seem to be creating a problem that didn't exist before. You want increased presence in mobile? Fine, but you don't need to get bogged down in the cutthroat hardware industry to do it. Instead, just release Firefly as an Android/iOS/WP app. That's seriously the Fire Phone's one notable feature. But if they are serious about the hardware industry, I don't get why they made it an AT&T exclusive. Companies generally only go for exclusivity for marketing benefits, but Amazon is one of the wealthiest companies in the world. Surely they could do just fine without AT&T's marketing force?

4. Flippyphone

Posts: 67; Member since: Jul 15, 2014

This was so amazingly ill-conceived. I don't understand how a company this large with its vast resources could miss the mark so badly.

6. kick413

Posts: 162; Member since: Sep 16, 2012

Strong offense to Amazon, the phone isn't even worth .99 cents on contract.

9. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

I wouldn't use this phone if if they gave me $200 in Amazon credit. Only if it ran vanilla Android would I even consider paying .99 cent. Amazon knows that this phone is dead after 1pm tomorrow.

11. meanestgenius

Posts: 22504; Member since: May 28, 2014

Amazon user here, and even I thought that the price and exclusivity of this handset were it's major weaknesses. In addition to lowering the on-contract price, they need to lower the OFF-CONTRACT price to $199. Then we will see this phone begin to sell.

21. NexusX

Posts: 613; Member since: May 16, 2013

even at $200, you'd have to worry about charging it all day,

12. alexsupertramp unregistered

nope...still not getting..not till you give it for free.

20. downphoenix

Posts: 3165; Member since: Jun 19, 2010

you do get a free year of prime with it, so it's like paying 99 cents for a year of prime.

13. heyhoa

Posts: 36; Member since: Jul 18, 2014

I think Amazon should pay the fire phone users for using it.

14. ManusImperceptus

Posts: 724; Member since: Jun 10, 2014

"The failure of Amazon’s Fire Phone goes to show that, no matter how big a company you are, you can’t launch new products without thoroughly considering every other similarly-priced product that the competition is already offering." Unless said company is Apple, in which case they can launch whatever they want and people will happily buy it without a second thought... :-D

15. blackberry_Boy

Posts: 213; Member since: May 27, 2014

That's what they get no one want a stupid amazon phone it's too late maybe when amazon was new it would of sold but now everyone almost has amazon prime and newer looking phones are out now days and no one wants the amazon interface to kill there battery in 5 mins

16. GTRagnarok

Posts: 48; Member since: Aug 22, 2014

Instead of free Amazon Prime with a purchase of the Fire Phone, it should be free phone with the purchase of Prime.

17. zinger69

Posts: 86; Member since: Feb 13, 2014

Should of been this price from the beginning...

19. jjjsong

Posts: 76; Member since: Dec 27, 2011

It's just unattractive in so many ways (design and spec at least). I wouldn't get one even if it's free on contract. Basically I don't think price is the only issue with this phone.

22. marcski07

Posts: 600; Member since: Apr 25, 2014

if they want to really compete on smartphone or gadget industry, they should make a new name for that sub-division, AMAZON is a crappy name and their logo is very unattractive. and make an super affordable powerful phone like Xiaomi and OPO, and it will sell like hotcakes.

24. CX3NT3_713

Posts: 2363; Member since: Apr 18, 2011

I'm waiting on the fire sale ;-)

25. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Still not worth it

28. The_Innovation

Posts: 648; Member since: Jul 18, 2012

For a company entering the phone manufacturing market for the first time, this makes sense.

29. crazymonkey05

Posts: 189; Member since: Nov 20, 2012

I personly like the gimmicky features on the fire phone, most notably the dynamic perspective....but seeing as the phone has poor battery life its the real killer for me

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.