We reported Tuesday that Amazon would be reducing the price of its Fire Phone from $198 to just 99 cents – its 64-GB phone was slashed from its $300 price-tag to just $100 – over concerns about Apple’s new iPhone 6 unveiling. Business analysts also suggest that Amazon may be trying to invigorate sales after experiencing a slump this summer.
Amazon’s (NASDAQ:AMZN) Fire Phone has been dubbed as the biggest bomb of 2014.
A new report is surfacing that asks the question: would Amazon have released a budget smartphone in addition to its Fire Phone if it weren’t for AT&T (NYSE:T)?
It is being reported by The Information that Amazon and HTC were collaborating last autumn to produce a budget smartphone device, but AT&T stepped in to end plans to create this device, saying it wouldn’t support Amazon’s Fire Phone if it didn’t also get an exclusive on the proposed budget smartphone.
Many are already arguing that the budget smartphone would have seemed far more attractive considering that HTC generates quality hardware. Also, Amazon’s innovativeness and rock bottom price could have been the only way the online retailer could have entered the crowded smartphone market.
“Amazon missed a chance to enter the market for low-cost smartphones; its recently launched high-end phone seems to be selling slowly,” The Information writes. “The beleaguered HTC lost out on what could have been a new revenue stream, and also missed an opportunity to show other partners that it had new momentum.”
The Amazon Fire Phone could finally prompt smartphone companies to refrain from giving wireless carriers exclusive access to these mobile devices. The move could have also rejuvenated HTC and led to a new source of revenue for the fledgling firm.
Neither Amazon nor AT&T has not commented on the report thus far.
Even with Amazon’s 99-cent price-tag for its smartphone, it may not be enough for consumers to take these Fire Phones off the shelves.
