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Ahead Of Apple’s IPhone Reveal, Amazon Slashes Price Of Fire Phone To $1

It’s all about selling services, not hardware.

Ahead Of Apple’s IPhone Reveal, Amazon Slashes Price Of Fire Phone To $1
[Photo: Alice Truong for Fast Company]

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.

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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.

About the author

Based in San Francisco, Alice Truong is Fast Company's West Coast correspondent. She previously reported in Chicago, Washington D.C., New York and most recently Hong Kong, where she (left her heart and) worked as a reporter for the Wall Street Journal.

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