Amazon wants consumers to purchase its 32GB Fire smartphone, and hopes a price tag of just 99 cents will help entice customers to sign up for an exclusive AT&T phone contract. The launch price of the 32GB phone was $199 earlier in the year, but the phone has seen disappointing sales. Consumers interested in the 64GB model can purchase it for just $99, a $200 price drop from the launch price of $299.
"With access to all of the Prime content, Mayday, 32GB of memory and free unlimited cloud storage for photos, plus the exclusive Dynamic Perspective and Firefly features, Fire is another example of the value Amazon delivers to customers," said Ian Freed, Amazon Devices VP.
The company reportedly sold just 35,000 Fire Phone units through mid-August, with AT&T exclusivity hurting sales even further. In addition to the Apple iPhone, Amazon will need to compete against a growing list of Google Android-powered devices from Samsung, HTC, LG, and other manufacturers.