Amazon's Senior Vice President of Devices David Limp admitted in an interview this week to mistakes the company made when it launched its first smartphone, the Fire Phone, stating flat out, "We didn't get the price right."
That's something of an understatement. Amazon launched the Android-based Fire Phone in July with a premium price of $199 with a two year contract on AT&T. However, the phone, which has some 3D-like effects on its display, didn't catch on at all with the buying public and in September Amazon slashed the two year contract price down to just 99 cents. In October, the company revealed that it was taking a $170 million write down due to unsold Fire Phone units.
In this week's interview with Fortune, Limp said of the Fire Phone, "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 added that Amazon will continue to support the Fire Phone via software updates, saying "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."
Do you think Amazon should cut its losses on the Fire Phone and move on?