When the Fire Phone debuted close to three months ago, it was available exclusively from AT&T and cost $199 with a two year contract. Today Amazon slashed their prices, reducing the cost of the Fire Phone to 99 cents.
It's still an AT&T exclusive here in the US, and the actual retail price is still $649, but starting today you can get Amazon's first smartphone for under a buck plus that two year contract.
I am still waiting for the AT&T website to update and confirm that the two year contract hasn't changed, but it looks to me like Amazon is not happy about Fire Phone sales, and decided to goose them by dropping the price by a couple hundred dollars.
Or at least that's one interpretation; Amazon might also be anticipating the launch of the new iPhone tomorrow, and is moving its smartphone down to a lower price tier (perhaps because it frankly cannot compete with the iPhone).
Beset by lackluster reviews, many have been speculating that the Fire Phone was a flop, and today's news shows that there was some truth to the idea. I for one doubted that speculation, but even I think that today's news says bad things about the Fire Phone's sales so far.
Whether the sales will continue to inhale is another matter; this might be enough to boost sales out of anemic to merely unimpressive. We'll have to wait and see.