Fire Sale: Why Amazon's Much-Hyped Phone Flopped

Amazon(NEW YORK) — Amazon’s much-hyped Fire phone didn’t even create a spark in the smartphone market. Four months after its debut, the device, which featured what Amazon called “breakthrough” technology, is now selling on Amazon for 99 cents with a contract — placing it at about the same price point as a fast food hamburger.

Where Amazon went wrong was creating a device geared toward drawing in new Amazon shoppers, according to Patrick Moorhead, principal technology analyst at Moor Insights and Strategy. He said the smart phone and Amazon were a classic case of a “brand mismatch.”

“I think that Amazon was more interested in monetizing its buyers than actually delivering a compelling experience,” Moorhead told ABC News.

The Fire phone is equipped with a feature that allows users to identify almost any product — from a book to a game or a container of kosher salt. It then directs users to Amazon to make purchases.

The 3-D display, ideal for game play, was touted by Amazon as another breakthrough feature of the phone. From Moorhead’s perspective, it’s one place the company had a chance to shine but executed the technology entirely the wrong way.

“I could imagine on a 10-inch tablet playing some really cool 3-D games, but their display was too small,” he said. “It was the wrong platform.”

Reviews of the Fire phone, which averages about 2-stars on Amazon, range from “extremely sad and dissatisfied” and “I wanted to love you” to “five stars.”


Copyright 2014 ABC News Radio

gettyrf_102022_collegecampusstudents2028529572675

What parents should know about the new FAFSA

Klaus Vedfelt/Getty Images (NEW YORK) — At the end of 2023, the federal government said it would update the Free Application for Federal Student Aid form, better known as FAFSA, ahead of the 2024-2025 school year. The

untitled20design20281129584851

Why is Trump's Truth Social stock plummeting?

Andrew Harnik/Getty Images (NEW YORK) — Shares of Truth Social soared after the company’s market debut last month — but the stock price has plummeted since then. After vaulting from an initial offering price of about $50