Amazon (NASDAQ: AMZN) has dropped the price of its failed Fire Phone to $199 from $449. It seems like a good idea, since evidence shows the smartphone is not selling well.
To make the phone even more popular, it comes withe a full year of the “Prime” Amazon service for low priced shipping and streaming video, and the e-ccomerce company also is promoting its full array of advantages:
Includes a full year of Prime benefits (a $99 value).
2.2GHz quad-core processor and 2GB RAM for ultra-fast app launch times and smooth multi-tasking
Bright 4.7″ HD display
13 MP camera with optical image stabilization, HDR, and LED flash
Includes unlimited free cloud storage for photos taken with Fire phone
Amazon-exclusive features: Firefly, Mayday, Dynamic Perspective
Over 33 million movies, TV shows, songs, books, apps, and more
U.S. compatibility: All GSM networks including AT&T, T-Mobile, and more. Not compatible with CDMA networks such as Verizon and Sprint
As CNET points out:
The Fire has faced a variety of challenges trying to lure customers. Timing was one factor as consumers in July were awaiting the launch of other potentially more enticing phones, such as Apple’s Phone 6 and Samsung’s Galaxy Note 4. The Fire Phone also failed to tap into the full array of Android apps as it restricted owners to a more limited app store.
Amazon also made an exclusive deal with AT&T to carry the phone in the US, limiting its accessibility. The new unlocked edition of the Fire Phone will expand the potential audience to T-Mobile and other carriers. But the phone is still compatible only with GSM networks, such as those used by AT&T and T-Mobile, leaving Verizon and Sprint subscribers out of the loop.
So, the move is nothing more than a desperate action to sell something consumers do not want.