Did you know that the Fire Phone had a firefly button to scan things like groceries, books and scan codes to fill up your amazon cart in real-time?

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Amazon Fire phone was developed under the project, codenamed "Project Smith”, at amazon, as a highly secretive project.
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Jeff Bezos personally drove the vision and features of the phone, who wanted to integrate Amazon’s suite of services into consumers' everyday lives.
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The Fire Phone was released in July 2014.

It was intended to be not just a smartphone but a connector for users to engage more deeply with Amazon's ecosystem, including its retail services, Amazon Prime, and media content.

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Amazon had 3 Goals with Fire Phone Launch

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• Increase Prime Video Membership: By integrating tightly with Prime, Amazon hoped to boost membership sign-ups and renewals.
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• Enhance Mobile Shopping: The Fire Phone featured Firefly technology, aimed at making it easier for users to scan and purchase physical items through Amazon.
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• Device Ecosystem Expansion: Amazon wanted to complement its successful Kindle and Fire devices with a mobile phone to complete its ecosystem.
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What happened When it Launched?:
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• It was initially sold exclusively through AT&T in the United States.
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• The phone saw lukewarm reception at best, with critics panning its high price and limited app selection.
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• Its 3D features were flashy but mainly useless, and its Fire OS operating system was incompatible most apps out there, like Google Maps.
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• Amazon assumed that developers would jump at the chance to develop apps for Fire Phone, but instead they stayed loyal to the existing major operating systems.

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5 Reasons Amazon took a Fall of $170 Million on the Fire Phone:

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1. High Pricing: Priced at $199 with contract, the Fire Phone was not competitive enough to entice users to switch from more familiar platforms.
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2. Limited App Ecosystem: Lacking the support of Google’s Play Services, the Fire Phone could not offer key apps that consumers expected.
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3. Carrier Restrictions: By launching exclusively with AT&T, Amazon severely limited its market exposure and potential customer base.
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4. Gimmicky Features: Innovative features like Dynamic Perspective and Firefly did not offer enough practical utility to users for switching from other platforms.
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5. Poor Timing and Competitive Market: The Fire Phone entered a mature smartphone market dominated by established players with strong brand loyalty.

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How big was the Fall?

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1. Amazon never officially disclosed sales figures for the Fire Phone, but it is estimated that they sold lesser than 35,000 units in the first 20 days after launch.
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2. In October 2014, Amazon took a $170 million write-down related to the Fire Phone.
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3. The financial impact and perceived failure of the Fire Phone contributed to a temporary dip in Amazon’s stock price, reflecting investor concerns over the company’s direction and decision-making.

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