Back in June, Amazon unveiled its camera-filled smartphone –
the Fire Phone. Four months later, it seems the retail giant’s first take on
smartphones wasn't a good idea as the company had to write off $170 million to
cover costs related to inventory and suppliers.
The problem with Amazon’s Fire Phone is that it really didn’t
make a lasting impression on consumers in the already crowded Android phone
market in contrast to phones from other manufacturers including Samsung, LG and
HTC. Moreover, the phone was initially offered as an AT&T exclusive which
even made it less accessible to consumers.
All these factors play a part on why Amazon’s Q3 earnings report
indicated an operating loss of around $544 million compared to last year’s loss
of $25 million. The good thing though is that revenue is up by 20% from $17
billion last year to $20 billion. The question now is how Amazon plans to move
forward with the Fire Phone; will they drop it or do a major overhaul?
