Amazon unveiled the fairly ambitious Fire Phone in July this year but sadly since its launch the device has barely set off sparks. Amazon’s struggle with the Fire Phone has been apparent for a few months now and it seems that it was much worse than we thought as the company has revealed that they’ve taken a $170 million charge on its smartphone in the third quarter.
Amazon has revealed this week that in the third quarter they made a whopping loss of $437 million with a hefty $170 million chunk “primarily related to Fire phone inventory valuation and supplier commitment costs.” In total the company has $83 million of unsold Fire Phone stock.
In a call to investors CFO Thomas Szkutak noted that the bulk of the loss was related to its North American territories with only $25 million attributable to foreign territories. Along with the Fire Phone Amazon also announced the Amazon Fire TV which went on sale in the UK today, and a new handful of Kindle Fire tablets.
It’s safe to say that the future for the Amazon Fire Phone is pretty bleak, especially considering Amazon have already dropped the price of the phone on contract to $0.99, something which happened to the HTC First Facebook Phone weeks before the phone itself was discontinued.