Amazon sees loss from failed Fire Phone

Electronic commerce company, Amazon, has had a rather unfortunate third quarter as it has reported a major financial loss.

The American based company has released its figures for its third quarter and its losses have actually increased to $544 million (AU $621 million), compared to last year’s loss of $25 million (AU$22 million).

This loss is startlingly worrying given that it has increased 20 times in the past 12 months and Amazon has said that it is “primarily related to Fire phone inventory valuation and supplier commitment costs”.

In fact, Amazon’s first smartphone was seemingly so unpopular that after two months of being on sale the price was down to 99 cents, which is approximately AU$1.14.

Amazon also revealed that there is $83 million left of unsold stock from the Fire Phone, which at just over AU$94 leaves no room for surprise at the company’s massive financial loss.

Amazon’s Fire Phone was released in July this year. Aesthetically, it is a very sleek and minimal smartphone with an all-black colour palette and rubber frame which is perfect for anyone who is likely to drop it. The handset’s glass black adds an air of glossiness to it for anyone disappointed by its minimalistic front.

Size-wise, the Fire phone is the same size as Apple’s iPhone 6, with its 4.7 inch display. However, it does weigh more than the iPhone at 160g compared to 128g.

When it comes to the camera, the Fire Phone’s 13MP camera comes with optical image stabilisation, which allows for high quality photos and 1080p HD video.

The Fire Phone comes with 3D depth imaging as well as face-tracking functions. Amazon no doubt hoped would put it ahead of other smartphones that have been released this year.

While there doesn’t appear to be anything particularly bad about the Fire Phone, it was going up against the likes of Apple’s iPhone 6 and iPhone 6 Plus, as well as Samsung’s Galaxy Alpha, and these are pretty tough acts to compete with given how long they have been established as smartphone giants.

It remains unclear whether or not Amazon will look into releasing a Fire Phone 2.

Written by Mazuma

Mazuma Mobile is Australia's most trusted mobile phone recycling service.

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