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AT&T Exclusivity Hindering Amazon Phone Sales
by Karl Bode 04:22PM Wednesday Aug 20 2014
Amazon's new smartphone isn't selling particularly well, a politely worded study by Chitika Insights noting that the phone's sales are "steady but flat." Amazon keeps sales numbers secret but the firm came to that conclusion by tracking ad impressions generated by the phone's users. The fairly tepid sales are in large part thanks to the exclusive sales arrangement with AT&T, something we noted at launch didn't exactly scream cutting edge. Still, the phone itself didn't exactly set the phone on fire either, with numerous features reviews complained were more gimmick than game changing.

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Banger

join:2014-07-22
Sturgeon Bay, WI

Right...

The price point and gimmicky features are hindering sales more then anything. If they could have. They spent way to much into features very few people would want. If they excluded them and dropped the price 200-300 off contract more people would purchase the phone. Maybe next go amazon will develops a cheaper phone.
xthepeoplesx

join:2013-10-21
Reviews:
·CenturyLink

Re: Right...

I agree. I think they need to get rid of all the gimmicks and produce a cheap phone like the coming up Aquos or the new ZTE where a top price of 250$ nets you a phone OFF contract. Next they need to lose all exclusive crap and make it unlocked for any carrier.

If they keep their eye on the prize which is making money off app sales and good sales and not so much with off the phone then they will have a knock out winner that will decimate in sales.

nothing00

join:2001-06-10
Centereach, NY

Re: Right...

Thing is, a company that's not a phone manufacturer like Facebook and Amazon MUST launch on a network. Because end users get support from the carrier that way. Activating an unlocked phone on AT&T/Verizon/someMailOrderMVNO and getting it working is not something your average Facebookian or Amazonian can do.

New product? You're stuck partnering with a carrier.

delusion_ftl

@204.124.13.x

Re: Right...

I don't agree with this in Amazon's case. They already do their own product support with their other devices. And a good product needs little assistance to get running (put in your sim and follow the wizard)

Goliath2k
Premium
join:2013-12-28
united state
Wow that Sharp Aquos Crystal phone looks great! And only $149 off contract with Boost/Virgin Mobile!

And it has a MicroSD card! Usually great phones like that always lack a MicroSD card. I'm going to have to keep an eye on this one, thanks for the heads up.
xthepeoplesx

join:2013-10-21
Reviews:
·CenturyLink

Re: Right...

Yea lately it seems alot of these phones have been coming out and releasing in the US market. I think we will continue to see this trend. Companies like Apple, Samsung, Amazon, and the likes will have to take notice otherwise they will start losing an important demographic and sales.

novaflare
The Dragon Was Here
Premium
join:2002-01-24
Barberton, OH
It is not just the gimmick stuff it is amazons craptastic custom launcher. Dynamic perspective is just a copy cat feature of ios that uses your face to adjust the perspective instead of the gyroscope. Parallax is nothing new. The phone is nice enough good specs etc. Amazon needs to loose the custom launcher period.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
said by Banger:

The price point and gimmicky features are hindering sales more then anything. If they could have. They spent way to much into features very few people would want. If they excluded them and dropped the price 200-300 off contract more people would purchase the phone. Maybe next go amazon will develops a cheaper phone.

Even if the phone was free I wouldn't want it. Most of the features on the phone were available three or four years ago. Of course the Amazon UI doens't help either. I used to own several 1st and 2nd Gen FireTV tablets and the UI was never very good. Once I switched to tablets using pure android, my tablet use went up many times compared to how often I used my FireTv tablets.

If this was 2010 or 2011 then the Fire phone would be good. But in 2014, you would need to pay me to use it.

novaflare
The Dragon Was Here
Premium
join:2002-01-24
Barberton, OH

Re: Right...

I just installed cyanogenmod and twrp on my kindle fire 8.9 HD instead of ditching it.the kfhd 8.9 has pretty great hardware. With cyanogen it is awesome. The amacrap interface sucks

Jim_in_VA

join:2004-07-11
Cobbs Creek, VA
kudos:4

not surpirsed

Amazon should not be in the phone business at all, and then to offer it only on AT&T? ... stupid move
--
... need help? »evdo-tips.com/
rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House

Re: not surpirsed

said by Jim_in_VA:

Amazon should not be in the phone business at all, and then to offer it only on AT&T? ... stupid move

I was considering adding another cell line for our household and was interested in learning more about the Amazon phone.

But when they announced it would be an AT&T exclusive, that was a total deal breaker. I won't even consider using AT&T.
compton

join:2002-02-08
Brooklyn, NY
said by Jim_in_VA:

Amazon should not be in the phone business at all, and then to offer it only on AT&T? ... stupid move

Actually, they are not really in the phone business. The purpose of the phone is to make things easier for customers to shop at Amazon.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

1 recommendation

ATT, where independence goes to die.

I was amazed that Amazon went this route after being so successful in peddling Kindles. ATT killed the Facebook phone when it should have been peddled directly from Facebook. Now they have killed this. No one seems to understand that the Google Nexus sales model WORKS.
--
"WHEN THE LAUGH TRACK STARTS THEN THE FUN STARTS!"

Metatron2008
Premium
join:2008-09-02
united state

How about 720p and no google apps?

Overpriced junk, buy a s5 or htc one m8 instead.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Re: How about 720p and no google apps?

720p? pfft
:/
dewdude

join:2010-03-27
Manassas, VA

Mediocre product and exclusive = terrible combo

I'll be honest; needing a moderately priced phone...I was initially excited to hear about Amazon's offering; that is until I read it was exclusive to AT&T.

It worked for the iPhone...but you're not going to be able to set the market on fire again with another smartphone that way ever again. Look at what happened when the iPhone moved to other networks?

It just doesn't work anymore. Any company that tries is just shooting itself in the foot.

goalieskates
Premium
join:2004-09-12
land of big

Re: Mediocre product and exclusive = terrible combo

Their advertising doesn't help, either. Who thought little kids mumbling about features would sell the phone to adults?

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

Need to remember...

This sounded like a great idea in the echo chambers over there at AT&T and Amazon.

They really had themselves convinced!

Jim_in_VA

join:2004-07-11
Cobbs Creek, VA
kudos:4

Look how it went for Apple stock

after the exclusive AT&T deal ended ... guess Amazon doesn't learn from history. Idiots.
--
... need help? »evdo-tips.com/
Banger

join:2014-07-22
Sturgeon Bay, WI

Re: Look how it went for Apple stock

I think they just wanted a guaranted payday while they test the waters of those who will actually buy it. Not surprised really.

Darknessfall
Premium
join:2012-08-17
kudos:6

Facebook Phone(HTC First) Version 2.0

Comment title says it all ^^^^^

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

Re: Facebook Phone(HTC First) Version 2.0

The Facebook phone COULD have made it if Facebook had sold it unlocked directly. ATT killed it and now they are doing the same to Amazon. ATT wants only two platforms to succeed because limiting choice is easy and the lazy way out.
--
"WHEN THE LAUGH TRACK STARTS THEN THE FUN STARTS!"
AVonGauss
Premium
join:2007-11-01
Boynton Beach, FL

Re: Facebook Phone(HTC First) Version 2.0

The "Facebook phone" didn't have a chance even before it was launched, much like the Amazon phone. A Google phone is successful because they are the originators of Android OS and people hope the phone will have some longevity with updates and support, which is not something you get with Samsung's heavily customized versions.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

Re: Facebook Phone(HTC First) Version 2.0

history has proven you can make anything a success if it is merchandised correctly. Signing up with ATT is the first way to guarantee that won't happen.
--
"WHEN THE LAUGH TRACK STARTS THEN THE FUN STARTS!"
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1
well I do not think Facebook is a strong enough brand to sell a phone anyway. They would have to convince people that owning a phone with their logo is better than having the app on their Android or iDevice.
--
Filan - Aurin Spellslinger - Pago - Team Legacy
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Not exactly

While I know its hard for the forum to get through the day without bashing AT&T, the Amazon phone fails on its own merits, or lack thereof.

It offers nothing innovative - Amazon has the power to offer desired content, toll-free, but does neither. These limitations are on Amazon, not the exclusive relationship with AT&T.

Jim_in_VA

join:2004-07-11
Cobbs Creek, VA
kudos:4

1 edit

Re: Not exactly

releasing or promoting a phone on only one carrier guarantees its failure. The Apple-AT&T deal was the one and only time it worked ... never again
--
... need help? »evdo-tips.com/
AVonGauss
Premium
join:2007-11-01
Boynton Beach, FL

Re: Not exactly

I'm not sure I would describe the iPhone as a, failure...

Jim_in_VA

join:2004-07-11
Cobbs Creek, VA
kudos:4

Re: Not exactly

did not say that the iPhone was a failure. When they released it to all carriers is when Apple stock soared
--
... need help? »evdo-tips.com/

cableties
Premium
join:2005-01-27

Re: Not exactly

Well there are other factors it soared (large investors saw the ipad, MBA, itunes, appleTV ...). But I do see your point that once Apple had the ability to feature not just exclusivity to ATT, but to have CDMA, then GSM/CDMA+4G/LTE models... more people bought them...
--
Splat

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
failure (v)
anything that requires you to infect a computer with quicktime.
--
Despises any post with strings.
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1

Re: Not exactly

Those are not memories I wish to relive. When news websites required you to have one of many different players and they all were different levels of bad. Movie trailers always seemed to be quicktime and news sites had a thing for Realplayer.
--
Filan - Aurin Spellslinger - Pago - Team Legacy
moray

join:2013-10-16
It's been years since iTunes came with QuickTime.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Shame. . . . .

its on the worst telco out there.
--
Despises any post with strings.
broadbandmav

join:2014-01-08
New Rochelle, NY

Re: Shame. . . . .

Really? I didn't notice that the phone was available on Sprint
broadbandmav

join:2014-01-08
New Rochelle, NY

Oddly..

A "selling point" of this phone is a year of Amazon Prime. Or I could get a smartphone of my choosing with better specs, and sign up for Prime on my own...

RR Conductor
NWP RR Inc.,serving NW CA
Premium
join:2002-04-02
Redwood Valley, CA
kudos:1

Huh?

"The fairly tepid sales are in large part thanks to the exclusive sales arrangement with AT&T, something we noted at launch didn't exactly scream cutting edge"

Huh?

anonomeX

@71.207.157.x

The Fire Phone...

everything we already knew we never wanted.

Well, maybe it's a really great phone for calling Amazon support ("Hey! Where's my order?!"), but how often do you need that.
xrobertcmx
Premium
join:2001-06-18
Sterling, VA
Reviews:
·Verizon FiOS

AT&T did not help

I looked at the phone. I was going to drop ~$500 on a GS4, but no way was I going to pick up and move back to AT&T. $70 a month more for a shared data and horrible customer service, no.
The other major sticking point is that it comes only with the Amazon Eco System.
The Amazon App store is not good. You have your mandatory AAA releases, and then, well, everything else.
Sure, a free year of prime nets you Prime Music. Which is actually a nice savings if you look at what Google wants for that. Then you also appear to be able to stream the Prime instant movies...they should have released that across the board by now. But then again, there goes your shared data plan.
I will stick with a phone I know I can unlock, and then mod.
--
I voted for Snoopy!

Selenia
I love Debian
Premium
join:2006-09-22
Fort Smith, AR
kudos:2

Good!!!

I hope it flops. It's high time this exclusive bullshit becomes a thing of the past. So, Amazon, how does it feel to have your greed come back and bite you in the ass? You just needed AT&T's money. Got news for ya-they pay this money to stifle their competition and could not give a rats ass how well your phone does. Hope you learned your lesson, but I doubt it.
mrcamp

join:2003-08-04
Lake In The Hills, IL

It's going to flop

With the number of devices with similar or better features, coming out, and at lower prices, there is no way this one will make it.
--
So Much trouble in the world...Bob Marley