:mjlol: Brehs, Amazon is Sitting On $83 Million Worth of Fire Phones No One Wants

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Amazon Sitting On $83 Million Worth of Fire Phones

A recent price drop fails to kick start sales on Amazon's first smartphone.

25 OCT 2014 BY MICHAEL MARTIN

Amazon has reportedly struggled to sell its Fire Phone smartphone since its release in July.

The online retailer is sitting on $83 million worth of unsold Fire Phone inventory, according to CNET. Amazon CFO Tom Szkutak says the company has lost $170 million on the phone.

The Fire Phone originally launched in July exclusively with AT&T. It retailed for $200 USD with a two-year contract or $700 without a contract and came with a one-year Amazon Prime subscription. Slow sales led to a price drop to $.99 cents with a two-year contract just two months after its release.

Over 3000 customer reviews on Amazon give the Fire Phone a two out of five star rating.

Smartphone competition has proven tough for Amazon. Samsung is the smartphone market leader, but Apple is alone in generating significant profits in the business. Both companies recently released new versions of their popular smartphones, the Galaxy Note 4 and iPhone 6 and iPhone 6 Plus, respectively.

IGN’s review gave Amazon’s Fire Phone a 7.0, calling it “good, but not good enough to compete.”


http://www.ign.com/articles/2014/10...-83-million-worth-of-fire-phones-no-one-wants

:mjlol:
 

Liquid

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I started noticing a bad trend back at amazon when I was out there a few years ago. They are basically the walmart of e-commerce and are just trying to have a say in every market imaginable. As you continue to grow, it gets increasingly tougher to do so many things well. The fire phone is a perfect example of this...let's compare Amazon and Apple for a moment.

Apple Products/Services
Macs (which slight and easy upgrades every year)
iPhones/iPods
iPads
iCloud/iTunes/App Store management
App Development/Service development

Amazon Products/Services
Phone
Tablet
Kindle Devices
Fire TV
Fire TV Stick
The biggest online store in the world
Android App Store
Amazon MP3 service/Amazon Kindle Service
Amazon Video
Amazon Movie studios
Amazon AWS
Amazon Local (Groupon Like Service)
Amazon Fresh (Grocery Service)
mTurk
IMDB
Alexa
Askville :mjlol:
Zappos Online shoe store
Audible
pets.com
etc etc etc...

Amazon is losing the focus that made them the best, they are stretching themselves out too thin and the Fire Phone/Tablets are a great example of that. They have too much bs going on in the background with that company and need to trim the fat before they lose what really matters...and thats the amazon.com store. They are trying to compete with tech giants that JUST focus on tech like Samsung and Apple. It's one thing to compete and its another to lose focus...I think Amazon has been aggressively trying to grab ALL of the online market and have thus spread themselves out too thin. Luckily at this time the Amazon store has not suffered as a result, but if they continue to add more and more to that company it will implode, its almost inevitable at this point at the rate they are going.
 

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I started noticing a bad trend back at amazon when I was out there a few years ago. They are basically the walmart of e-commerce and are just trying to have a say in every market imaginable. As you continue to grow, it gets increasingly tougher to do so many things well. The fire phone is a perfect example of this...let's compare Amazon and Apple for a moment.

Apple Products/Services
Macs (which slight and easy upgrades every year)
iPhones/iPods
iPads
iCloud/iTunes/App Store management
App Development/Service development

Amazon Products/Services
Phone
Tablet
Kindle Devices
Fire TV
The biggest online store in the world
Android App Store
Amazon MP3 service/Amazon Kindle Service
Amazon Video
Amazon Movie studios
Amazon AWS
Amazon Local (Groupon Like Service)
Amazon Fresh (Grocery Service)
mTurk
IMDB
Alexa
Askville :mjlol:
Zappos Online shoe store
Audible
pets.com
etc etc etc...

Amazon is losing the focus that made them the best, they are stretching themselves out too thin and the Fire Phone/Tablets are a great example of that. They have too much bs going on in the background with that company and need to trim the fat before they lose what really matters...and thats the amazon.com store. They are trying to compete with tech giants that JUST focus on tech like Samsung and Apple. It's one thing to compete and its another to lose focus...I think Amazon has been aggressively trying to grab ALL of the online market and have thus spread themselves out too thin. Luckily at this time the Amazon store has not suffered as a result, but if they continue to add more and more to that company it will implode, its almost inevitable at this point at the rate they are going.


Not to mention their margins are extremely thin already. They need to fall back.
 
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