Posted Fri Oct 24, 2014 at 02:00 PM PDT by Steven Cohen
The smartphone's lackluster sales have proved costly for the company.
Amazon has revealed some troubling numbers related to its Fire Phone. In a conference call with investors, the company's chief financial officer announced that they were taking a $170 million writedown primarily as a result of issues related to the fledgling smartphone.
The Fire Phone was released back in July through a partnership between Amazon and AT&T. Unfortunately, the device has failed to catch on with consumers, causing the retailer to cut its price down from $199 to 99 cents with a two-year contract. The $170 million writedown is in large part due to inventory and supplier costs related to the phone. While exact sales figures for the smartphone have not been revealed, the company announced that it had a whopping $83 million worth of inventory left at the end of the third quarter.
Customers looking to help relieve Amazon of some of their mounting inventory can purchase a Fire Phone for prices ranging from 99 cents to $449 depending on the service agreement.
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