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Under the Apple Hype Machine, Amazon Drops Fire Phone Price To 99 Cents

Whatever it is that Apple's going to announce a few hours from now, it seems Amazon has decided it's probably not going to send people rushing to buy its Fire phone. Amazon's cut the price of the phone from $199 to 99 cents. At that price, the Fire phone comes with free Amazon Prime membership, too -- but also a 2-year contract with (exclusive carrier) AT&T. Writes ExtremeTech: Whether that’s going to be enough to stimulate sales is an open question — $450 unlocked is still a tough sell for a device that is overmatched by products like the cheaper Nexus 5, or the recently unveiled $500 second-gen Moto X. In August, adoption data from advertising agency Chitika claimed that total Amazon Fire Phone sales were paltry, representing just 0.015-0.02% of phones in use, or fewer than 30,000 phones. That number will have doubtlessly ticked up slightly since then, and it’s true that Amazon’s partners, like AT&T, have aggressively pushed the phone in online stores.

43 of 134 comments (clear)

  1. It's a Fire Sale by Anonymous Coward · · Score: 5, Funny

    Someone had to say it.

    1. Re:It's a Fire Sale by RadioElectric · · Score: 3, Funny

      Tobias: Oh, my God, we’re having a fire. Sale. Oh, the burning! It burns me! Evacuate all the schoolchildren! (Screaming. Singing “Amazing Grace.”) This isn’t a fever! (Continues singing.) Can’t even see where the knob is! (Dramatic sigh.) And scene.

      Roger Danish: Um... would you like to try that a little simpler... maybe?

      Tobias: No.

    2. Re:It's a Fire Sale by Dogtanian · · Score: 4, Interesting

      Joking aside, the "99 cents" headline might give the impression of a big (if not "fire sale") reduction, but it's is as misleading (and pointless) on its own as the subsidised headline "price" of *any* contract-tied phone is.

      This post already made the point that the total price of phone + contract (since you can't get the former without the latter) over two years is $600, which implies that it was $800 before when the still-contract-tied phone was selling for "$200" and it was being panned as an awful deal.

      If it's not quite a non-story, it's not the one it's being made out to be either.

      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
    3. Re:It's a Fire Sale by postbigbang · · Score: 2

      And worse, Amazon pimps the Fire Sale Phone with that all time, well-loved and respected AT&T-- champion of all that is holy and moral in telephony.

      --
      ---- Teach Peace. It's Cheaper Than War.
  2. It's not apple this time! by RyuuzakiTetsuya · · Score: 5, Insightful

    They failed on their own merits.

    I doubt the Bigass iPhone thing today's the reason why they tipped on this.

    --
    Non impediti ratione cogitationus.
    1. Re:It's not apple this time! by tepples · · Score: 4, Insightful

      Is there really any compelling feature of the Fire Phone other than being the only not-iPhone that plays Amazon streaming video?

    2. Re:It's not apple this time! by RyuuzakiTetsuya · · Score: 4, Informative

      It doesn't have that going for it anymore.

      The UI's interesting as an experiment, but ultimately really creepy.

      I'm pretty sure Aldous Huxley has a few things to say about an electronic gizmo that serves as an entry way to cheap consumer goods.

      --
      Non impediti ratione cogitationus.
    3. Re:It's not apple this time! by ShaunC · · Score: 4, Insightful

      Well it's easy enough for pretentious 9 year olds to use for playing Minecraft, at least that's all I got out of the commercial. Pretty sure the blame for this phone's flop lies squarely at the feet of Amazon's marketing department or whoever they hired to produce the TV ad. The phone itself barely makes an appearance in the commercial, it's just a couple of kids yammering about how they're going to stream stuff and play games, followed by a double plug for Amazon Prime, which I'm still scratching my head over. I don't need to buy a new phone to get Amazon Prime.

      Is Amazon trying to sell an actual product here, or just selling the idea of a digital babysitter? Either way I guess I'm not their target audience and I sorta wonder who is.

      --
      Thanks to the War on Drugs, it's easier to buy meth than it is to buy cold medicine!
    4. Re:It's not apple this time! by SternisheFan · · Score: 2

      It has a sort of/kind of 3D-ish display.

    5. Re:It's not apple this time! by Mr+D+from+63 · · Score: 2

      I doubt the Bigass iPhone thing today's the reason why they tipped on this.

      I think it plays heavily in to the decision, and the timing. Apple and Amazon are the two brand names that have a content and hardware eco-sphere, so they compete directly in a section of the market. Amazon is intent on taking more of that share, and the Fire phone is a part of the strategy.

    6. Re:It's not apple this time! by ArcadeMan · · Score: 3, Insightful

      The difference between Apple and Amazon is that Apple understands there's a market outside of the USA.

    7. Re:It's not apple this time! by L4m3rthanyou · · Score: 4, Insightful

      I think they hired Microsoft's marketing department to do the commercial.

      It's not even believable anyway. My irritating hipster children only use Apple products!

      --
      One of these days, I'm going to cut you into little pieces.
    8. Re:It's not apple this time! by Noah+Haders · · Score: 2

      my understanding is it's stock android like cyanogen mod, not the OHA. It doesn't come with google play or any google apps. so as far as I understand it doesn't have all the hooks in it to vaccum up data for goog.

    9. Re:It's not apple this time! by tlhIngan · · Score: 2

      I think it plays heavily in to the decision, and the timing. Apple and Amazon are the two brand names that have a content and hardware eco-sphere, so they compete directly in a section of the market. Amazon is intent on taking more of that share, and the Fire phone is a part of the strategy.

      The business cases for both are completely opposite, however.

      Amazon makes devices to sell content and services. They sell Kindle hardware, Fire hardware, etc., at cost (practically). The goal here is to promote use of Amazon's music, movie, TV, e-book and app stores, which is why they're heavily locked down and discourage use of alternative sources of content. Sure you can sideload, but that's finicky and annoying enough that most users wouldn't bother.

      Apple, though, sells content to push hardware. Apple doesn't really care about the content and is more than happy (generally) to let the content industry dictate prices. Sure Apple gets a cut, but that's just storage and bandwidth and handling the transaction and such. (It's not easy to be able to sell something and let users re-download it at will and keep transaction records. Hell, there's a lot of places that charge $5 to let you redownload your product up to a year later). The money for Apple is in hardware. The content merely helps move the hardware, so Apple puts a little effort into selling and promoting the content.

    10. Re:It's not apple this time! by FatdogHaiku · · Score: 2

      I'm not even checking it out while it's bound to AT&T.

      --
      You have the right to remain sentient. If you give up the right to remain sentient, you will be elected to public office
    11. Re:It's not apple this time! by DuckDodgers · · Score: 2

      Apple still cares about a cut of the app sales and so forth, that's why they won't let companies that sell through their app store offer products more cheaply elsewhere.

      So I would amend your comment to stay that Apple cares about content but cares about hardware sales more. Amazon just cares about content sales.

      I'm happy the Amazon Fire flopped. I don't want Microsoft to be the undisputed king of desktop PC operating systems, I don't want Apple or Samsung to be the undisputed king of smart phones, I don't want Google to be the undisputed king of search engines, and I don't want Amazon to be the undisputed king of internet stores.

    12. Re:It's not apple this time! by mick88 · · Score: 2

      You can knock Microsoft and Amazon all day long for their phones not taking the world by storm, but I think that actually sells short the remarkable phenomenon that is the iPhone & associated Apple universe. One of the takeaways here for me is that it truly is almost impossible to break into the smart phone market this late in the game given what Apple has done - at least here in the US.

      To see MS & Amazon, who have generally succeeded and overpowered rivals for many years, fail to make a true dent in the smartphone market is a real testament to Apple's success; Apple really did raise the bar that high. As you pointed out the Amazon flop is in marketing... exactly where Apple does not flop. You would think a good device would be its own marketing but I think that Apple has shown the device and the marketing are one and the same. And maybe what Amazon is learning is that this isn't like the kindle (good device on its own) but requires ramping up the marketing BS by a million fold.

      For the record, I am a disillusioned former fan of the AppleVerse so I am cheering for anyone to bring legit competition, even if paradoxically it's those other well-known foes of competition: MS & Amazon

      --
      I created this account just so I could comment on this story
  3. Spoon by Naatach · · Score: 5, Insightful

    There's only so much you can get for a spoon that only works in the Amazon bowl.

    --
    There may be no "I" in team, but there's also no "F" in way.
    1. Re:Spoon by Richard_at_work · · Score: 4, Insightful

      I disagree with you on the walled garden argument - I can read Amazon Kindle books on the Kindle ecosystem series of devices, Apple devices, Android devices, Windows 8 devices, Windows Phone devices, Macs, Windows PCs, Linux PCs, Blackberrys and others.

      I can read Apple iBooks on ... Apple devices and Macs.

      I can view Amazon Instant Video content on various Kindles, Apple devices, Android devices, Windows 8 devices, all the major consoles, tonnes of TVs natively, and of course Windows PCs and Macs.

      I can view Apple iTunes video content on ... Apple devices and Macs.

      My content purchased from Amazon certainly seems to be available on a much wider range of devices than content purchased from Apple...

    2. Re:Spoon by lister+king+of+smeg · · Score: 2

      No kidding. For all the talk about Apple's walled garden, Amazon seems to have more crippled devices with higher walls.

      And, really, if Microsoft or any other vendor could lock people into their walled gardens they'd do it in a heartbeat.

      Not really the fire line of tablets lets you sideload apps I installed fdroid app repository on my kindle fire, which I happen to be posting from. That's not to say their perfect by any means for example you cant replace the keyboard without rooting your device which is just stupid and pain in the ass when I need to use ssh and have no metakeys, yet have symbols for copyright trademark registered and infinity but no tab. There are other minor nits to pick but saying they have a worse garden wall then apple is disengenuos at best.

      --
      ---Saying gnome 3 is better than windows 8 not so much a compliment as it is damning with light praise.
    3. Re:Spoon by RyuuzakiTetsuya · · Score: 2

      As a diehard apple fanboy, I'm pretty much OK with this. As long as i can have VLC or something similar for movies(Which is in the iOS store; and similar apps do exist) and side load MP3s, I'm good.

      However, the creepy part isn't the bowl or the spoon, it's the bowl insisting you restock your cereal using amazon and you can order right from the fucking bowl.

      --
      Non impediti ratione cogitationus.
  4. Editors, please fix title by Anonymous Coward · · Score: 2, Insightful

    Amazon Drops Fire Phone Price To $450

    FTFY. The price is $450. If you buy it for $0.99, you are actually paying $600.99 because it includes an overpriced phone service contract.

    1. Re:Editors, please fix title by rogoshen1 · · Score: 2

      Yet you can get a nokia 510 (win8 phone) at target for 60 bucks, and pay 60 a month for 2GB of data (pre paid, no contract)

      As much as the app selection on windows phone sucks, i'd take that over this 'deal' any day of the week.

  5. Fire = Zune by globaljustin · · Score: 5, Insightful

    Amazon is a victim of their own hubris, not Apple.

    Only an idiot or egomaniac would think that Amazon could compete with that product...that phone...it had too many dumb bells and whistles (3D screen! ooh shiny!) but all the important details were wrong.

    Amazon lost out to a better designed, better marketed, more established, funner to use product...just like M$ did with Zune

    --
    Thank you Dave Raggett
    1. Re:Fire = Zune by UnknowingFool · · Score: 3, Insightful

      I think both the Amazon and Zune are examples of good but not good enough. The Zune wasn't a bad MP3 player. It could have been better if all the squirting worked like consumers wanted. But both entered a market way too late. Apple had moved on to the iPhone and the iPod Touch and left the Zune in the dust. The Fire has to compete with Android and Apple.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    2. Re:Fire = Zune by globaljustin · · Score: 2

      from a purely technical perspective, the Zune interested me because you could really use it as a hybrid external drive and output any media file to any device...see, technically ****all devices can do that**** but because of copyright, artificial scarcity, bad design, and bloat most of the time we get devices from the manufacturer that are locked down (ex: iphone)

      of course, Zune's problem was M$...they had to slap their proprietary stuff onto the Zune to make sure you paid a monthly fee somehow

      i had a friend who bought a Zune even though we all told him not too...he's a non-techie, outdoors type and wanted to do his research and make his big purchase...we all felt bad b/c he sort of just believed M$ wouldn't lock him out of his own device to play his own music...seriously...it was funny in that many of his friends tried to be like, "look, i know Apple is obnoxious, but if you're going to do this..."

      --
      Thank you Dave Raggett
  6. Re:So they cut it from $199 to $600. I see. by Seumas · · Score: 3, Insightful

    For a buck, I'd buy it. Hell, I'd buy it for $20 or $30, even though it's within the confines of Amazon. It's not like the entire phone is going to be locked down to just Amazon. You'd surely still have a browser and apps to do various things outside of Amazon. And probably wifi service if you wanted to connect it to your home network or something.

    It's the phone contract that does it in for me. In an age where I can use Ting as my phone service for an average of $12/mo with no contract, why in the hell would I want to get a two year expensive contract with one of the old phone companies?!

  7. Re:So they cut it from $199 to $600. I see. by gstoddart · · Score: 3, Insightful

    For a buck, I'd buy it. Hell, I'd buy it for $20 or $30, even though it's within the confines of Amazon. It's not like the entire phone is going to be locked down to just Amazon. You'd surely still have a browser and apps to do various things outside of Amazon. And probably wifi service if you wanted to connect it to your home network or something.

    Of course, as a cynical, tin-foil hat wearing individual I'll say that anything you do can and will be monitored and tracked by Amazon for their own purposes, even when not directly using their products.

    So, really, are you actually any better off?

    --
    Lost at C:>. Found at C.
  8. um no by slashmydots · · Score: 2

    "but also a 2-year contract with (exclusive carrier) AT&T." Wow, what a deal! I think I'd actually rather rip out all my teeth one at a time though.

  9. Amazon's phone versus Amazon's tablet by 93+Escort+Wagon · · Score: 3, Insightful

    The Kindle Fire was a well-marketed, cheap tablet launched at a time most people were just starting to hear how fun and useful tablets could be. Many people wanted a tablet, but were unwilling to drop $500 on an iPad - those folks bought a Kindle Fire. (Yeah there were other cheap tablets, but frankly the average Joe didn't ever hear about them)

    The Fire Phone comes at a time when iOS and Android phones are already entrenched. The majority of people who want a smartphone already own one. Worse, there's not an obvious price gap between the Fire and it's erstwhile competition. Free Prime shipping isn't going to sell the phone, since the types of people who know about Prime are the type of people that already bought into a phone platform years ago.

    --
    #DeleteChrome
  10. It's not 99 cents by Anonymous Coward · · Score: 2, Informative

    It's not 99 cents. It's cost is covered in monthly payments.

  11. "Under the Apple Hype Machine"? by wonkey_monkey · · Score: 3, Insightful

    Under the Apple Hype Machine

    Perhaps I'm being super-dense, but... what's that supposed to even mean?

    --
    systemd is Roko's Basilisk.
  12. What was Amazon thinking? by sirwired · · Score: 3, Interesting

    I cannot, for the life of me, figure out what Amazon was thinking when they released the thing. While on a "raw spec" basis, it's not a bad phone, it's headline feature does little more (at the moment) than make it easier to buy stuff from Amazon. Why would anybody buy this phone over a similarly-priced phone from Samsung/Moto/LG?

    If the phone was significantly cheaper than the competition (like the Kindle Fire), or if the tight Amazon integration was a super-useful feature (like the Kindle Readers), it might have been a success. But charging the same as the competition for a phone running a custom OS? I expected it to be about as successful as the "Facebook Phone", which is to say "not at all".

    This sort of completely blind hubris reminds me of the Netflix fiasco. Anybody with more than a few brain cells to rub together should have been able to see the flaws here...

    1. Re:What was Amazon thinking? by PvtVoid · · Score: 2

      I cannot, for the life of me, figure out what Amazon was thinking when they released the thing.

      No shit. As far as I could tell, the selling point of the phone was: "It shows you lots of ads!" Who the fuck would want a phone like that?

  13. No Google Play Store by sirwired · · Score: 4, Insightful

    Yes, you can still install and run Android apps like any other Android phone, as long as those apps are actually available from the Amazon app store. Not all apps have been customized or tested to run on Amazon's particular Android build, which is a little more custom than the "skin" other Android builders commonly use.

    No, it's not as bad as a Zune, but it doesn't offer any compelling case over the more-standard alternatives.

    1. Re:No Google Play Store by funkymonkjay · · Score: 2

      Worst case, you can always side load an app. http://www.cnet.com/how-to/how... I had hoped the fire phones would work like those advertisement subsidized cars. That is, the phone would have all kinds of ways for Amazon to learn things about me and with it market stuff to me. And in return, it would be the cheapest phone service, say 20 bucks a month for some reasonable usage cap. But no.... the damn thing came out with a $200 price tag and the same rip off service from at&t (go t-mobile!) I could care less about the 3d crap. I stopped paying attention from that point. So, now with this news, it's competing with last gen phone pricing. same service. So now, do i go for a last gen iphone or an s3 or this fire phone. it's compelling but then i have to ask my self, do i want to suffer through amazon's app store, and the customized features that will probably have sub par experience (compared to a nexus) for a nominal hardware upside? If I was bezos, I would have dumped all that money on creating more and better amazon apps. hell, if you want to do something ground breaking, go work on creating an e-ink display that performs like an LED display.

  14. Why buy Amazon hardware? by sjbe · · Score: 3, Insightful

    I disagree with you on the walled garden argument - I can read Amazon Kindle books on the Kindle ecosystem series of devices

    You've got it backwards. The question is why we would need a crippled Amazon device? I can buy an iPad and buy music and books and merchandise from Amazon. I cannot buy a Kindle and buy music from Apple. So I have less restrictions buying the Apple hardware than the Amazon hardware because Amazon software and content will run on more platforms.

    Amazon's Fire tablets and phones are nothing special and are clearly aimed at getting you to buy more stuff from Amazon rather than for being a general use device. I don't really need Amazon's help there so what is the point of these devices? Even their e-paper based Kindles are pretty locked down (my wife has one) and it's relatively awkward to do anything other than buy stuff from Amazon with it.

    My content purchased from Amazon certainly seems to be available on a much wider range of devices than content purchased from Apple...

    Apple is trying to sell you a device. Amazon is trying to sell you content and stuff from their store. I'd rather have the Apple device and be able to buy from Amazon than they Amazon device and be unable to buy from Apple.

    1. Re:Why buy Amazon hardware? by sjbe · · Score: 2

      So I don't have it backward at all.

      'Fraid you do at least on the hardware. You are correct about their software and media. Amazon's software is less locked down but their hardware is more restrictive. I cannot really see any point to buying Amazon's hardware given the available alternatives. I could buy a Nexus or other Android tablet and have access to basically everything I get from Amazon's offerings but without the Amazon sales pitch or weird modified version of Android. I can buy Apple's hardware and have access to basically all of Amazon's software offerings. Amazon hardware clearly is a more restrictive "garden" in this case.

    2. Re:Why buy Amazon hardware? by CrashNBrn · · Score: 3, Insightful

      Even Steam is more open than Apple/iTunes. You can access nearly all Steam features from a normal browser. In fact with "Enhanced Steam" for Firefox, it's a better "experience" than browsing Steam via Steam.

      I could hardly believe that I couldn't even browse the iTunes store without installing iTunes. Yeah I don't fucking think so. Just like the Windows 8 "store" --- not accessible from a browser that you know has bookmarks, and tabs and doesn't feel like a stupid-ass "app".

    3. Re:Why buy Amazon hardware? by timothy · · Score: 2

      For a multi-purpose / general purpose tablet, I agree.

      I bought a used Kindle Paperwhite, though, and I find it's a very neat device. Even as extra weight (7 or 8 ounces?) on a trip by plane, it's been good to have along, even with a Nexus 7 in the same bag. I can read a book on either, but the Kindle a) has a crazy-long battery life, saving the other device for things like checking Google Maps on the other side of the trip, and b) is easier to hold.

      I intended to use it only for free / out-of-copyright stuff, but I have definitely been drawn into the web, just a bit, and recently bought several books that way. Easy to rationalize ;) (Esp. when Neal Stephenson books go on $2 sale ...)

      --
      jrnl: http://tinyurl.com/c2l8yr / foes: http://tinyurl.com/ckjno5
  15. Re:So they cut it from $199 to $600. I see. by bobbied · · Score: 2

    So basically they made it a subsidized phone with the extra $25/month charge to have it on your AT&T plan. Over the 24 month contract that's $600.

    Oh, stop punching numbers into that calculator, reading the fine print and just sign the contract you rube.

    AT&T (and all of the major carriers) do this kind of thing all the time. Car dealers do this, credit card companies do this, realtors do this all kinds of retailers do this.. They turn things into monthly payments, rip you a new one while you pay an arm and a leg. They bleed you dry one drop at a time and most of us don't notice how we've been played. We just complain that everything costs so much.

    You are NOT supposed to catch on to the ruse and actually put numbers in the calculator and hit the multiply key...Wana be really upset with your carrier? Ask them how much it is just to buy the handset outright vrs what they end up collecting if you buy it monthly. Ouch... Now THAT'S a finance charge!

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  16. Re:AT&T Sucks by bobbied · · Score: 2

    Dang, even if you buy it outright it is LOCKED to the AT&T network. Amazon has got to undo that mess or I'm NOT EVER going to think about it.

    Any phone you buy outright should come UNLOCKED by default. Any phone you own after the contract is over should be unlocked upon request, if not automatically by the carrier...

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  17. It's not the Phone, it's the Carrier! by RealGene · · Score: 3, Interesting

    Why should I pay them for what amounts to a Point-of-Sale terminal, then have to sign with and pay AT&T for the means to connect it?
    AMZN already has "free" 3G via WhisperNet for Kindle; why can't they just act as a reseller for air/data time?
    What I thought should happen when AMZN announced a phone was that you would buy it for a nominal amount, and your AMZN purchases would generate airtime credits:
    Buy something, get a percentage of the purchase price converted to minutes/megabytes. Of course, you could always 'buy' more mins/megs, but if you're trying to drive consumption of your other products, it seems straightforward to make the means to do so a reward for the behavior you want.

    --
    Mission: To provide products that consume time and energy as entertainingly as permitted by the laws of thermodynamics.