Amazon’s stumble with the Fire is a major setback for the online retailing giant. By sinking money and resources into a smartphone, the company had hoped to gain a significant piece of the huge smartphone market long dominated by rivals like Apple AAPL 1.10% , Google GOOG 0.23% and Samsung. Moreover, the Fire was supposed to funnel mobile shoppers to Amazon’s online store by making it easier to find and buy products. But Amazon is now left scrambling, and it’s unclear whether it can recover from its flop.
“The odds of Amazon succeeding were always very small,” says Mark Mahaney, Managing Director and analyst for RBC Capital Markets, who argues the price cut is a veritable Hail Mary pass. “My guess is it’s too late.”
With Amazon slashing prices from $199 to $0.99 and sales 20 days post launch at an estimated 35,000, the Fire is unquestionably an epic failure, more so than even I would have predicted prior to the phone being revealed.