AMZN faced a massive blow when its first ever smartphone launched received immense criticism and was considered as a completely fail venture. The question here arises whether the company would succumb to their wounds and try again to dominate the smartphone industry or learn from their mistakes and focus on what they are better at.
The company themselves knows the calamity they have experienced. Their Fire phone was a complete disaster and the company experienced a major loss in terms of the amount spent on its production, marketing etc. moreover they still have many sets within their warehouses that are collecting dust particles on them but at the same time bearing an 83 million dollar loss on its developer.
AMZN after suffering brutally has finally learnt that succeeding in the smartphone domain is simply not a piece of cake. But ironically, the company is still willing to make a mark. The founder of the company believes that it takes successive years if not decades to intervene and establish in a pre-established market.
The company believes that they have many products on their portfolio that are a massive success. Hence, one failure does not really matter. The founder believes that it would approximately take five years to establish themselves in this market. AMZN understands that the response will not always be positive and making blunders only paves a path that can lead to something far more productive. So the company seeks to make a mark in the coming years while learning from their mistakes in the past.
This has also created a battle amongst critics. Some believe that the company should continue and while learning from their mistakes come up with a better product. On the other hand, some believe that such a massive blow was enough for the company to learn their lesson.
AMZN itself has not clearly come up with their version of the story in the form of a plan so far. This also indicates that the company is now less enthusiastic about this venture. This can be deduced from the fact that they are not marketing their products anymore. The holiday season is in full swing but even then the company has not actually strategized about it.
The problem with AMZN was basically that they did not remain in their comfort zone while developing this device and tried to come out and opt for something big which resulted in mere failure.