Launching of the fire phone by the Amazon company
The launching of the fire phone by the Amazon company was a way of the company entering into the mobile phone market. The developing of the phone which was three dimensional was done by the Amazon.com while Foxconn did the developing of the product. The product’s announcement of its entrant into the market was on 18th June 2014. The Amazon’s ‘fire’ project was an early termination as the smartphones did not meet the expectations which were set hence leading to its closure.
factors led to the failure of Amazon’s fire phone project
Various factors led to the failure of Amazon’s fire phone project. To start with, the product was too expansive hence making it hard for consumers to purchase. The selling price of the smartphone was $199, which was the same price for the competing phones that is the Samsung Galaxy and the iPhone. The high price meant to incentivize the competing phone owners to leave their devices did not serve its purpose. The company dropped the cost of the phone to 99% after identifying the error it had made. However, the movie was not enough to bring the product to the position.
The phone had a small App Store in Comparison with other devices. Amazon’s device had 24000 apps in comparison to one million and more apps found in the google store(Wohlsen,2015). The users of Amazon’s device had difficulties in accessing services such as the Gmail, Google Maps and YouTube. Facilities like the Dropbox were absent in Amazon’s device. However, the Amazon device could accommodate android apps though it was a cumbersome process. In this regard, the users of Amazon’s mobile phone saw it challenging to maintain the device.
The Amazon device had features that had limited interest. Innovative features in the device like scanning of many objects by just pressing a button had the aim of making many individuals buy the products of Amazon. Use of this factor as a selling point could have made influence to only individuals who use Amazon heavily and not many individuals. Lastly, the late entrant of the product in the market made a contribution to its failure. Competing products such as the iPhone and Android smartphones have long existed in the market. As a result, the outcome could not have a fair competing ground with the other products.
Amazon’s product was going to fail in the long run. The company made a loss of $170 million in the first quarter of its operation. Proper management is key in the progress of every business. High loses in the Amazon was an indication of poor management concerning the project, which lead to the project’s failure. The consumers were not ready for Amazon’s product as other existing products with similar and better qualities already were existing in the market. Carr saying that the Amazon product would link more of its users, was not convincing. The users of other iPhone and Android could also connect with Amazon’s product users.
Being a new product, encountering competition was a big challenge as the other competing products had a good market establishment. The product’s features had no difference with the already existing products. The consumers could maintain indifference about the product hence lacking market. The price of the Amazon ‘fire’ mobile phone was equal to that of competing products such as the iPhone. In this regard, consumers may prefer remaining with the devices they were using rather than going for the new product. Putting the above factors to consider, there was no way the Amazons project could have been a success.
References
Wohlsen M. (2015). The Amazon Fire Phone Was Always Going to Fail. https://www.wired.com/2015/01/amazon-fire-phone-always-going-fail/
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