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  • Posted August 28, 2014 by
    simon33
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    Initial Fire Phone sales underwhelming

     

    Initial data on sales of Amazon’s new Fire Phone indicate that the retailer has not unloaded nearly as many units as it had hoped.

     

    While Amazon does not release raw sales number to the public, traffic analysis has enabled interested third parties to develop their own estimates as to how hard Fire has hit the market, without the need to phone psychic readings.

     

    According to The Guardian, this data suggests that the upper-limit for the number of devices sold is in the neighborhood of 35,000.

     

    Data from Chitika, an online advertising firm, reveals that Fire Phone was responsible for only 0.015% of activity on its online ad network in the 20 days following its release.

     

    Analysts integrated this number with data from ComScore, which provides detailed information on smartphone users in the USA, to arrive at 35,000 as the upper-limit for how many phones are likely in use.

     

    Fire Phone’s underperformance does not come as a shock, however.

     

    The phone costs $199 with a two-year contract, and runs at $650 for those who want it unlocked. Observers noted early on that these prices are quite steep for the features and quality of the phone.

     

    A with-contract price tag of $199 also puts Fire in direct competition with Apple’s iPhone, a product it seems unlikely to match in terms of hype or customer loyalty any time soon.

     

    In order for Fire to perform to expectations at its current price, it will have to divert consumers from Apple’s and DROID’s customer bases, both of which are extremely loyal to their brand and unlikely to switch allegiance.

     

    Jeff Bezos, CEO of Amazon, unveiled Amazon’s smartphone offering in mid-June. Bezos tried to leverage the phone’s cutting-edge technology to generate interest, focusing on novelties specific to the Fire Phone.

     

    While features like Dynamic Perspective and Firefly are highly innovative, they do not afford a drastically better consumer experience than that offered by competing devices, contributing to the low conversion rates and sales figures seen so far.

     

    For his part, Bezos is ready to be patient, and expects success in the long-term.

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