Any suspicions that the Amazon Fire Phone is a dud can now be laid to rest. The company on Monday announced a significant price drop for its first smartphone, which launched in August for $199.99 with a new two-year contract on AT&T. The price shocked most of the industry and pundits who were expecting Amazon to sell the phone unlocked at a lower cost.
The price drop applies to the 32GB model of the Amazon Fire Phone, and customers won’t see anything dropped from the incentives offered at launch, including support for free Mayday, 12 months of Amazon Prime and access to Prime Instant Video. The 64GB model is still selling for $299.00 (Corrected, see update below) with a new two-year AT&T contract and can also be purchased on one of the carrier’s Next 18 or Next 12 early upgrade plans. Likewise, the 32GB model which now costs under $1 can be acquired for $0 down and $18.75 per month for 24 months with AT&T Next 18.
The price cut comes less than a month after Amazon launched the Fire Phone, which suggests it hasn’t been selling very well. Research reports from comScore and Chitika in August suggested that Amazon had sold no more than 35,000 units of the device. Will the price cut help? We doubt it.
Update: At the time of publication the 64GB Amazon Fire Phone was listed for $299 with a new two-year contract. It is now $99 with a new two-year contract.