Wednesday, 3 December 2014

Amazon’s Fire Phone was a sales disaster


Amazon is the benchmark for retail corporations. The company has been the best out there and has dominated the market for many years now. When compared to its peers and competitors, Amazon is way ahead of them as it provides best quality products in comparatively lower prices. The retail stores such as Wal-Mart, EBay, and Target etc. have been chasing and trying to match the prices with the largest retailer in the United States. The company expanded its business into more product categories, but it failed to make its mark in the phones market.
To be very honest, Amazon’s Fire Phones were an absolute sales disaster. The company entered the market of smartphones a little too late where Apple introduced its 6th series of iPhones and Samsung Galaxy Phones introduced its 5th version. Moreover, Amazon took a bold step to price tag its Fire Phone at just $199. Financial Post reported that “The Seattle-based technology company cut the price of its Fire Phone to just US$199 unlocked, a vast reduction from the US$649 price tag it originally carried during the device’s much-hyped launch in June.”
According to a tech savvy Carmi Levy based in London said “It’s no secret that the Amazon Fire Phone has been an absolute sales disaster in the U.S. And the reason being is that it didn’t offer a compelling enough reason to smartphone owners to switch from the phones they currently has and are satisfied with.”
The phone did not make an impact in the market because of many reasons. First of all, the phone was extremely overpriced considering the company being a new entrant in such a competitive market where Apple and Samsung have been dominant for almost a decade. Moreover, when compared to Apple’s latest products as well as Samsung Galaxy phones, Amazon Fire Phone is bulky and heavy. The Amazon Phone is the heaviest and thickest of all the smartphones in its price range. The phone has lack of differentiation as well as fewer applications.
In a nutshell, in terms of performance, prices, and anything else, Amazon Fire Phones became sales disaster as soon as they were launched in the market.

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