Amazon has been planning an expansion into more and more product categories which has been a fail move so far when compared with the expectations of either the consumers, marketers, or the company. Amazon Fire Phone was expected to be competing with the high end smartphones of today which includes Apple iPhone and Samsung Galaxy and Google Nexus etc. But after the phone was launched, not only the company but the people who bought and the tech critics brutally down voted the Amazon’s Fire Phone. There might be many reasons such as a very late entry in the market etc. But being too expensive and on par with the likes of iPhone and Samsung Galaxy phones was surely one.
Amazon was bold enough to put a price tag of $199 with a two year wireless contract on its Amazon Fire Phone which is approximately on par with Apple iPhone and Samsung Galaxy Phones. Fortune reports that the company officials admitted that they priced the Fire Phone wrong. David Limp, AMZN Senior Vice President of Devices 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.”
he company is known for giving away high quality products at reasonable and comparatively lower prices. After finding out that the Fire Phone will not fit in the category of high end phones, the company cut down its price to just 99 cents. Imagine having a smartphone for a buck, totally cool. Limp further added, “When you’re taking risks, they’re not all going to pay off. Those are the facts. We are going to keep iterating software features to get it better and better. Each release that we’re doing, we’re learning. Beyond that, I leave it out there to see what people think.”
Hence the Vice President of Devices of the company is confident enough that their next release would not be lying under the category of Amazon Fire Phone. Generating bad results at its launch and so far, the company is disappointed but it has pledged to come back bigger, better, and stronger in the coming times.