Even in the face of a $170 million charge for its failed Fire Phone, as well as the company sitting on $83 million worth of Fire Phone inventory, Amazon isn’t throwing in the towel. In an interview with Fortune, Amazon senior vice president of devices David Limp confirmed the online retail giant will move forward with plans to release Fire Phone sequels.
In the interview, Limp said Amazon made a mistake when pricing the Fire Phone. When it first launched, the 32GB Fire Phone went for $200 on a traditional two-year contract, while the 64GB variant went for $100 more. “We didn’t get the pricing right,” said Limp. “I think people come to expect a great value, and we sort of mismatched expectations.” Amazon rectified the pricing by marking it down to $1 on-contract, but by then, it was too late.
Additionally, Limp compared the Fire Phone to the first Kindle e-reader, in that the Kindle was critically panned when it launched back in 2007. Since then, however, the Kindle turned into a success story for Amazon, something the company wants to replicate with the Fire Phone.
Limp didn’t reveal details about Amazon’s future hardware plans with regards to the Fire Phone, but he did say the current model will continually get new software features. Limp also said Amazon is listening to customer feedback and, with it, hopes to make their devices “better and better” along the way.