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Thursday, October 23, 2014

Amazon takes a $170 million hit thanks to unsold Fire Phones

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If you needed any further proof that the Amazon Fire Phone was an absolute flub, the online retailer announced during their Q3 2014 earnings call that they’ll be taking a $170 million charge for unsold Fire Phones and other costs relating to inventory valuation and supplier commitments. Despite net sales up 20% at $20.58 billion for the quarter, their operating losses — a whopping $544 million — is the largest ever in Amazon’s history. That’s gotta hurt.


After years of rumors, the Amazon Fire Phone finally launched earlier this year exclusively on AT&T for $200 on contact. The Fire Phone also came equipped with gimmicky new features like their Firefly camera software which could identify Amazon products in the real world (as well as do a bunch of other stuff your regular Android device could do right now). After Amazon’s first smartphone was met with relatively lukewarm reviews, it saw a quick $100 price drop.


Still, Amazon is optimistic, especially with the busy holiday shopping season fast approaching. Along with curated product lists and shopping guides, Amazon will push their new lineup of products like the Kindle Voyage and Fire HD Kids Edition tablets.


[Amazon]






from Phandroid http://ift.tt/1tgZXkg

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