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Amazon Sitting On $83 Million Worth of Fire Phones No One Wants - IGN
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.
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.