One day before Apple’s big product reveal, which is all but certain to debut new iPhones, Amazon cut the price of its Fire phone to 99 cents with a two-year contract. On Monday, the e-commerce giant also made its phone available for preorder in the U.K. and Germany.
A late player to the smartphone game, Amazon unveiled its Fire phone in July with a bevy of new features, including dynamic perspective, which allows for one-handed browsing, and Firefly, which uses the device’s camera to scan, look up, and purchase items.
The price slash reinforces concerns about Fire’s sales performance. At its $649 retail price ($199 with a two-year contract), Amazon positioned its phone directly against the likes of high-end smartphones, including the iPhone. But judging by the first round of reviews, Amazon hasn’t made compelling enough a case with its first effort in the smartphone space. However pricing the device at a mere dollar shows the retailer’s true colors: Even for all the hoopla surrounding Fire’s launch, at the end of the day, Amazon is all about selling its services and goods–not its hardware.