Editor in Chief
- Dec 30, 2010
- Reaction score
- Austin, TX
Amazon's Q3 financials came out last Friday and they were not exactly glowing. In fact, even though net sales increased 20% to $20.58 billion, the company had an over-all loss of $544 million for the quarter. A sizable chunk of that loss was due to a $170 Million dollar write-off that was strictly from their new Fire Phone.
The reason why the Fire Phone turned out to be a colossal flop is not really that surprising. The problem was that the phone only allowed users to get apps from Amazon's App Store as it wasn't a very Android-friendly version of Android. This works fine on Amazon's Fire series tablets because the restriction is minimal and Amazon's eReader ecosystem is far more developed with already entrenched customers. Apparently this didn't translate that well for the phone.
In all honesty, we aren't all that surprised here at DF HQ... are you?