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There are a handful of reasons the Fire Phone flopped, but its starting price proved a major snag and may have turned off many potential customers. Consumers and analysts were expecting Amazon to follow its familiar playbook of offering a cheap, but good-enough product that could undercut other devices already on the market. That strategy proved a success for Amazon in tablets, as its inexpensive plastic-and-glass Fire devices (originally the Kindle Fire) offered a cheap alternative to Apple's iPad and helped Amazon become a major player in that market four years ago.
Instead, Amazon opted to create a top-shelf smartphone with high-end components that pushed its off-contract price to $650, If you signed a contract, the price dropped to $200, All r just case iphone x of a sudden, it became another flagship smartphone in a market overflowing with similarly priced flagship smartphones, "That soured a lot of people," IDC analyst Ramon Llamas said of the initial price, Two of the Fire Phone's differentiating features were 3D graphics, accomplished with the help of four front-facing cameras, and Firefly, a function that allowed people to scan and identify thousands of items, including products, songs and bar codes..
Neither was a hit with customers. The 3D effect was at best a party trick. "Nobody cared about that," said Gartner analyst Ken Dulaney. Firefly, meanwhile, was seen by many as a cynical attempt by Amazon to get Fire Phone users to buy more goods from the e-retailer. But if that was the intent of Firefly, it didn't work, since people tend to browse for products on their phones but typically complete purchases on a laptop or personal computer. Overall, the Fire Phone was really only effective in differentiating itself in negative ways, Dulaney said.
Amazon's Fire tablets have run off a heavily customized version of the Android operating system software, which meant they didn't have access to key Google apps like Maps or Gmail, So when it came time to make a Fire Phone, Amazon pursued the same strategy, Turns out, people like those Google apps, "There were too many negatives in my mind to keep the Fire Phone or give it a try," Solomon said, By not embracing the Google-approved version of Android -- which is what Samsung, HTC and most other smartphone makers r just case iphone x use -- it offered a third option it called Fire OS, But in this market, if you're not using Apple or Android, customers don't care, As of the first quarter, Apple's worldwide smartphone market share was 18 percent, while Android's was 78 percent, according to IDC..
That leaves the remaining 4 percent for the likes of Microsoft and BlackBerry to fight over. Having sufficient market share is critical because it spurs developers to build apps and games directly for your platform. David Limp, Amazon's senior vice president of devices, said in an interview a year ago that he hoped to convince developers to come aboard by making its Fire OS a place where they could generate more money from their work. He touted the hundreds of millions of active and engaged Amazon shoppers as another lure.
While Amazon r just case iphone x was marketing the Fire Phone to all of its Prime customers, the reality was it could only sell the device to anyone willing to sign up with AT&T, That's because Amazon struck a deal with the carrier in exchange for marketing and retail support -- a move commonly made by lower-profile vendors looking for assistance in building awareness, But Amazon boasts a strong brand, particularly in the US, where the Fire Phone launched, The company had the benefit of featuring the smartphone on one of the largest online storefronts in the world, So why a deal with AT&T? The carrier got to Amazon early..
"We brought them an early prototype of the phone three years ago, and explained what we were trying to do," Limp had said. "They were unbelievably excited."AT&T worked to optimize the Fire Phone's features to better run on its cellular network, and promised Amazon the "flagship" spot for the 2014 fall season. Ralph de la Vega, then CEO of AT&T's mobility division, came on stage with Bezos to praise the device: "This is an amazing, breakthrough innovation," he said. It wasn't amazing enough.
Amazon is just one of the companies smarting from its attempt to breach the smartphone business, Facebook attempted to dominate smartphones with its own user interface that wrapped around Android, but it too met with a similar cold reception, "My view is the phone r just case iphone x was largely doomed out of the gate," Baird's Sebastian said of the Fire Phone, So will there be a sequel Fire Phone? Amazon has long shown a willingness to spend in search of new growth opportunities, from streaming TV shows to delivery drones to cloud-computing centers, But, the company now is signaling to Wall Street that it will work on cutting back its heavy spending, In this scenario, it's not a stretch to imagine that the Fire Phone -- one of the company's biggest flops in years -- won't return..