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$170 million loss prompts Amazon to drop Fire Phones
Global SourcesUpdated on 2023/12/01
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The company is rumored to be working on a 6in tablet expected to be sold for $50.
Amazon is rumored to be developing a budget $50 tablet to replace
the (pictured) Fire HD 6 tablet. Image source: Amazon
When Amazon reported its third quarter results, the company posted a $437 million loss. It’s not unusual for the company to do so, as it typically invests far more than its operating income, but a substantial chunk of that loss was related to the Fire Phone. According to the company, about $170 million of the damage was due to unsold Fire phones. This month, the company discounted and sold off its remaining inventory and there are no plans of offering it in the future.
In addition to the failure of the Amazon Fire Phone, the Wall Street Journal reported that Amazon has curtailed the development of a number of different next-generation devices. Among those devices cancelled was a large-screen tablet with stylus, which is likely a budget version of the iPad Pro or Microsoft Surface.
That said, the company has been rumored to be working on a new 6in tablet that is expected to be priced for as low as $50. The tablet, set to be available during the holiday season, is much less expensive than Amazon’s current lineup. The latest budget Fire tablet, the HD 6, retails for $99, and no other major brand has a tablet at that price point or below.
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