Amazon takes $170 million loss for failed Fire Phone

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For years, Amazon's rumored smartphone had the industry buzzing with anticipation. In fact, the project was so secretive that only a select few were even aware of the it. But in July of 2014, Amazon finally launched the Fire Phone. Although the initial hype was chaotic, the actual product was critically panned and assumed to be a commercial failure. Today, Amazon has solidified the device as a commercial failure by posting a loss of $170 million dollars in its Q3 financial report related to the Fire Phone. 

According to Re/code, during the Q3 financial earnings report conference call with reporters, CFO Tom Szutak called the phone “a good device in a very competitive market.”  Although the Fire Phone packed a wide variety of innovative features like a 720p screen with support for 3D effects, Amazon's 'Mayday' support service, and 'Firefly', most found the features and phone just catered to Amazon's services and promoted shopping with the online retailer. 

Judging by the loss, it looks like Amazon's attempt to bolster sales of the device by reducing the price of the phone did not have much of an impact. While Szutak's comment is valid, Amazon will have to create something much better if they are going to attempt to break into the smartphone market.

Source: Re/code

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