It was reported earlier that Amazon made substantial losses of $544 million (approximately £340 million) in its third quarter with the American company blaming its losses on the release of its first attempt at breaking into the smartphone world with the Fire Phone.
Amazon stated that there was $83 million left of unsold stock of the Fire Phone which was released in July this year.
Now, one of Amazon’s executives has said that they believe the pricing of the smartphone was just one of the reasons as to why it never really took off. While you can now purchase a Fire Phone handset for less than a pound, Amazon originally offered the smartphone at a price which is typical of industry standards, at $199 for the 32GB model and $299 for the 64GB version.
In an interview with Fortune, David Limp, senior vice president of devices at Amazon, said: “We didn’t get the price right, I think people come to expect a great value, and we sort of mismatched expectations. We thought we had it right. But we’re also willing to say, ‘we missed.’ And so we corrected.”
Mr Limp also highlighted that the two software updates the company has seen since the launch of the Fire Phone four months ago has helped to ease some of the problems that customers had reported with the handset.
The Fire Phone is a rather minimal smartphone when it comes to looks, and is available only in black, although the glass back is a stylish feature. However, its rubber frame is an advantage to those who tend to have accidents.
It offers a 13MP camera with optical image stabilisation which offers high quality photos as well as an 1080p HD video. The Fire Phone also features state of the art 3D depth imaging alongside face-tracking functions, which Amazon were likely to have thought would be a key selling point.