September 8, 2014 Last Updated 2:18 pm

Fire sale on the Fire phone: Amazon drops price to 99 cents

The new smartphone from Amazon.com is, apparently, not a big winner. The company announced today that the price on the Fire phone is now 99 cents (and a new two-year contract with AT&T, of course).

Fire-sale“Fire is now 99 cents with a two-year contract, plus customers get one full year of Prime included,” said Ian Freed, Vice President, Amazon Devices in the company’s announcement. “With access to all of the Prime content, Mayday, 32GB of memory and free unlimited cloud storage for photos, plus the exclusive Dynamic Perspective and Firefly features, Fire is another example of the value Amazon delivers to customers.”

In many ways, the Fire is now priced where it should have been from the start. Though the phone has gotten some decent reviews, it really didn’t break a lot of new ground. It dynamic perspective was seen merely as a gimmick, and maybe saw through Firefly as simply a way Amazon would drive more sales. Because of this, the phone fits better into the low priced category than it does as the upper end.

But the real problem for new smartphones is breaking through the iOS and Android ecosystem barrier. Today smartphones are parts of over device systems – if you own an iPhone, for instance, you might also own an Apple TV or an iPad. So to break through, Amazon may have needed to show that they, too, have an ecosystem worth investing in.

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