According to latest news, Amazon (NASDAQ:AMZN)’s much prized fire Phone has failed to meet the anticipated impact, the company hoped for. Hence, it is currently being sold at a disappointing $199 for an unlocked smartphone. This is a significant drop from the previous price of $649. This previous cost translates the hopes Amazon (NASDAQ:AMZN) had with its first ever smartphone.

The company seems to have undergone massive disappointment, which is quite evident of the dramatic price drop. Usually, an unlocked smartphone doesn’t come at such a meagre price. Most smartphones that are acquired on a two year contract that also includes a carrier usually cost $199. In addition, even the most inexpensive unlocked phone, such as OnePlusOne can be purchased for the least price of $300.

Amazon (NASDAQ:AMZN) had added the perk of free Amazon (NASDAQ:AMZN) Prime membership for a year with a Fire Phone in hopes of attracting more customers. The usual price for Amazon (NASDAQ:AMZN) Prime is $99. For some reason, however, all its effort had to face failure.

In addition to this, Amazon (NASDAQ:AMZN) has reduced the price of its smartphone, contracted with AT&T (NYSE:T) to $0.99 only, in September.

Ever since its launch in July this year, the phone has failed to do good business. Even though, right after its release, it did catch a time where it did better and had a stream of slow but steady sales; the market has been very harsh with the device and consumer population has rejected it.

In the past, Amazon (NASDAQ:AMZN) has done quite well with its other tech devices. The Amazon (NASDAQ:AMZN) Kindle has drawn in impressive figures in terms of sales and revenue that the device has managed to immerse the company in. however, Kindle did start off slow but soon picked up and drove home remarkable figures.

Right after its release, Fire Phone was expected to ride on similar trends. This was evident from the statement that Jeff Bezos, Amazon (NASDAQ:AMZN) CEO released. He stated that it was a common thought that the smartphone is expected to start off slow but bring in rewards based on long term sales results. Amazon (NASDAQ:AMZN) tied itself firm to this ideal as it had worked for its e-book intervention, Kindle. However, Kindle is a different market altogether. It was first of its kind among contemporaries and offered features that were absent in other similar devices and hence the popularity.

Amazon (NASDAQ:AMZN) can’t measure the market dynamics their smartphone has entered with that of the one that Kindle has reigned for quite a while. Fire Phone entered a market that has cleverly designed devices being launched every other day. In such an intense competitive scenario, the Amazon (NASDAQ:AMZN)’s smartphone didn’t come with anything dynamic and hence failed to catch the attention of vendors as well as consumers.

Amazon (NASDAQ:AMZN) is not novice in the digital market and the company should have realized that its smartphone should have had something that enables it to standout in order to be deemed worthy of competition.

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