Even though Amazon is yet to release the official sales figure of Fire Phone, the drastic drop of the phone’s price from $199.99 to $0.99 in the US already spells doom.
When the Amazon Fire Phone was launched earlier this year, many retailers were beaming with pleasurable anticipation. However, with the phone’s price already dropping from $199.99 to $0.99 in the US, it’s no doubt that the Amazon Phone isn’t performing well if not being foredoomed to failure.
According to most vendors, the main problem with the phone is that the price isn’t representative of its features. When compared to other similarly-priced smartphones released this year, the Amazon Fire is lacking in many specifications. Again, the fact that the phone is tied to a two-year contract with AT&T makes it somewhat limiting to users who prefer other network plans. For these reasons, most users tend to go for other phone alternatives.
It seems after studying the market trends, Amazon realized these shortcomings and decided to change their plans before it was too late. Speaking on Monday, Amazon Boss Jeff Bezos admitted that his smartphone plan was lacking in thought and execution As a way of making up for the dreadful performance of the phone so far, Amazon will launch the phone in other markets, on top of slashing the upfront price.
In the UK, the phone will be fledged under the flagship of O2. The UK customers will be required to pay an upfront fee of £0 on the £33 tariff for 2GB via the O2 network. For those interested in buying the phone in Germany, the device will be available through Deutsche Telkom. Germans will pay an upfront fee starting at €1 via the Deutsche Telkom network. The launch in both Germany and UK will be done on September 30th, 2014.
Whereas no device has witnessed such a huge price cut since the disastrous launch of the HTC First in mid-2013, many analysts expect that the price drop will woo more customers in the US as well as across the globe. And if that happens, the high purchases will eventually translate to some worthwhile sales. If not, then Amazon should start preparing for the huge losses they will incur from the miscalculated and overambitious projections about the Amazon Fire phone.