After a tumultuous launch and dismal sales figures, the Amazon Fire Phone is officially a failure. TechCrunch reported that “Amazon’s SVP of Devices David Limp told Fortune the big issue was a miscalculation on pricing.” The Amazon Fire was originally put on the market for $199, then the price was dropped to 99 cents on September 8th. However, a sustained drop in delight came with the drop in price. Since consumer delight continues to drop, even after the price was significantly cut, it does not appear that a “miscalculation on pricing” was the Fire Phone’s biggest issue.
Consumers reported several problems with the Fire Phone ranging from an inelegant interface to slow performance. You can read about our take on What Extinguished Amazon’s Fire Phone Sales in this earlier blog post. While CNet reported that “Limp said that the Fire phone is selling better post-price cut than it had been before, by a significant margin,” consumer feedback continues to become more negative. Amazon experienced a similar pattern with their Kindles, as the early models saw several problems which were fixed as time went by. Though Amazon has expressed their efforts to “keep iterating software features to get it better and better,” these improvements are not seeing increased delight.
Argus Insights has been tracking the progression of consumer reactions to the Amazon Fire Phone since its launch, and will continue to analyze its progress. If you are interested in the competitive landscape of the entire smarthphone market, take a look at our Monthly Smartphone Report. For more information about this product, any other product, brand, or retailer, access to our data, or custom analysis and consultation, please contact Argus Insights.
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