Editor in Chief
- Dec 30, 2010
- Reaction score
- Austin, TX
Earlier this week we reported just how much of a flop the Fire Phone was for Amazon. The phone has had abysmal ratings, with only 2.3 stars on Amazon's own product page. Beyond that, the real problem with the phone is that Amazon priced it far too high and basically shot themselves out of the market.
Although this was obvious to anyone on the outside, including consumers, for some reason it wasn't obvious to the executives at Amazon. Otherwise they would have priced it appropriately and it might have done a bit better. Regardless, Amazon has seen the error of their ways and admit that the Fire Phone pricing was wrong. Here's a quote where they recently admitted as much,
At least the company is willing to shift when necessary. They actually had changed the price down to $1 in September, which lead to a significant sales improvement. (Well... duh!)
What's interesting is that Amazon is still committed to the device and plans to offer sequels in the future. At least this time they plan to price the phone more aggressively to match the market. We will see if the next generation Fire Phone catches fire or fizzles out...
Sidenote: the other problem that Amazon should take a look at is the fact that the phone was an AT&T exclusive. We can't imagine limiting the market for the device to one carrier is a good idea in any way shape or form...