Amazon Chief Financial Officer Tom Szkutak disclosed on Thursday that Amazon had taken a $170 million write down in the third quarter largely related to their unsold stockpile of Fire smartphones as well as supplier commitment costs. The retailer is sitting on $83 million in unsold Fire Phone stock, which means that it is actually possible that Amazon is sitting on more unsold units than they have managed to sell in the past 4 months.
I know that I snarked about this topic yesterday when AT&T announced they were bundling a $49 Fire HDX tablet with new Fire Phone sales, but damn. That gimmick-packed wunder-phone really isn't selling.
What's next, do you think? Amazon already okayed a great bundle deal with AT&T; do you think that will become permanent, and will Amazon offer a similar bundle for an unlocked Fire Phone?
I was all set to get a Fire Phone following news of yesterday's bundle but as I sat down this morning and priced the monthly cost I lost interest. That bundle looks like a great deal, but it comes with a $60 a month contract. Considering how rarely I would need the smartphone (I do have a landline, after all), that is a lot of money over 2 years - especially when you remember that this is a crippled smartphone.
As Juli Monroe pointed out in the comments yesterday, Amazon's platform lacks Google apps, and even though the Amazon appstore has most of the apps found in Google Play, " it is missing some of my must-have apps (or was, I haven’t checked recently) like the Starbucks app. Even when they have apps which are available on Google Play, they are often an upgrade or two behind, which annoys me. "