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AT&T stopped Amazon/HTC budget device


News by Luke Jones on Thursday September 11, 2014.

amazon fire phone · amazon news · smartphone news · luke jones

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Fire Phone
Fire Phone

Amazon's Fire Phone is the smartphone flop of the year and two months after launch is on a very slippery slope to obscurity. Expect the device to disappear entirely within a few months as consumers have just not warmed to the handset that started life as an expensive flagship. In terms of specs the Fire Phone gets plenty of things right, but went against Amazon's tablet model of selling affordable products.

How different things could have been if Amazon had managed to release an affordable smartphone. The Fire Phone was never going to be that, but the online retailer was working on such a budget option with smartphone giant HTC, but the plans got ripped up after AT&T put its weight on Amazon.

The Fire Phone is an AT&T exclusive, an avenue it seems Amazon wanted to pursue desperately (for some reason), because when the second largest carrier in the US also demanded exclusivity on the budget Amazon/HTC handset as well, HTC pulled the plug on the product (CEO Cher Wang valuing independence). That is amazing really, because Amazon could have taken the chance and severed any exclusivity for the Fire Phone and made both it and the lower end device across all carriers. However, for some unknown reason the company wanted to stick to a tired model and make the Fire Phone an AT&T exclusive, even though it meant scrapping the budget device.

Considering the Fire Phone has crashed and burned as a carrier exclusive device, it may be a decision that Amazon is already regretting. A partnership with HTC, a company that still makes among the best hardware in the business, on a low end device could have given Amazon a road into a very crowded market. As it is now, the company is still on the outside and after the giant failure of the Fire Phone will find it harder than ever to get in, that?s if Amazon even decides to make another smartphone.

If anything, the disaster surrounding the Fire Phone should show companies that exclusive carrier deals at the high end simply do not work anymore. Amazon was limiting the Fire Phone's appeal from the very start, almost forgetting that it was a new player in a very mature market against a slew of established brands.

source: The Information

 
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About the author

Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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