Rumors have suggested that Amazon’s Fire phone sales were more of a spark than a wildfire, and now it looks like that is indeed the case.
Amazon revealed today that it’s taking a $170 million charge that it says is related to “Fire phone inventory valuation and supplier commitment costs.” Exact sales figures weren’t disclosed, Amazon says that it had $83 million worth of unsold inventory at the end of its third quarter.
The Amazon Fire phone launched in July for $199.99 on-contract, but that price was cut to $0.99 less than two months later. Based on everything we know now, it looks like the Fire is a bit of a flop. What will be interesting is seeing if Amazon tries again with a sequel and, if it does, how Amazon might change things to make the Fire 2 more successful.
What do you think Amazon could do to the Fire 2 to make it better than the first model? For a quick refresher on the first Fire, you can check out our video review of Amazon's smartphone below!