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Amazon Fire Phone Was Too Expensive, Amazon VP Says, But The Company Will Continue With The Device

Amazon Isn't Giving Up On The Fire Phone, Though It Admits It Made Them Too Expensive

It's no secret that sales of Amazon's Fire Phone have been less than ideal, but Amazon isn't giving up on the property. In an interview with Fortune, a senior vice president at Amazon confirmed that Amazon is sticking to its guns and continuing development for the device.

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In Fortune interview, Amazon Senior Vice President of Devices David Limp said that one of the reasons for the Fire Phone's unimpressive debut was that it was just as expensive as other smartphones on the market from more established mobile tech companies. Since then, Amazon has since done some course correction in that department. Now, people can pick up a Fire Phone on-contract for as low as $0.99.

Of course, the Fire Phone also suffers from other issues like a lack of app support from third-party developers. There isn't much economic advantage right now for developers to devote resources to operating systems other than iOS and Android. According to Limp, though, the company will keep pushing forward with the Fire Phone, citing success with other devices in the Fire family like tablets and Fire TV.

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It's been a hard year for Amazon, especially regarding the Fire Phone. The company recently posted a sizable loss. Granted, much of that loss can be considered more as an investment as Amazon shelled out some cash to acquire growing properties like Twitch, Amazon's billion-dollar purchase. Still, the failure of the Fire Phone isn't helping. The Fortune article cites that Amazon is holding $83 million worth of unsold Fire Phones.

Well have to see if Amazon can turn the Fire line around into a profitable mobile line. As the teams behind Windows Phones are still realizing, breaking into an ecosystem so dominated by iOS and Android is no easy task.

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