The leading online store Amazon.com made an entry into the Smartphone world with the Fire phone. It was entering the market when a lot of popular brands have established a strong base for themselves. As Amazon was very late in entering the mobile market, there were many experts who predicted that it would fail to make an impact in this huge industry. It looks like the expert predictions have come true as the Fire Phone has failed to take a good start in the market.
The eCommerce giant company is now mulling on stopping the sales of Fire phone. Despite entering late in the market, the Fire Phone lacked the dynamic features that are offered in the modern day Smart phones and only stuck to conventional pricing as against features. This could be the undoing of the Fire phone as it failed to impress the Smartphone users who had plenty of features on offer at affordable prices from other leading Smartphone manufacturers.
There are reports coming through that Amazon is all set to give up on the Fire Phone brand. It is hardly one year since the Fire phone brand launch, but with dwindling sales of the Fire phone it is about time the company stopped its sales. Dozens of engineers have been laid off from Amazon’s hardware division Lab126. The company has also made a structural change to the working of Lab126 and has reduced two individually working hardware development departments into a single one.
This is the first time that we are seeing Amazon quite hesitant in loading continuous amount of money into a new project. It has now realized that there is no standing for the Fire phone in the market and cost cutting is the only way forward for the eCommerce giant. Amazon has analyzed deeply and thoroughly about the Fire Phone and its prospects in the market and has come up with a conclusion to stop selling it as the product is a huge flop in the Smartphone market.
The Kindle Fire tablet from Amazon was the best selling Android tablet. But, now with a lot of traditional player tablets hitting the market, the position of Amazon’s Kindle Fire tablet has taken a beating in the market. Amazon has now slipped below the fifth position in the tablet sales figures.
Amazon is looking to concentrate of lower end tablets to increase the tablet sales and has plans to completely drop Fire phone from the market. The pricing of Fire Phone was not Amazon-like as it was looking to make a profit right from the start.