Amazon Cancels Hardware Projects After Fire Phone Disaster



/ 3 years ago

amazon-fire-phone

Amazon’s ambitious entry in the incredibly competitive handset market has been a rather unsuccessful venture and resulted in extremely poor sales. According to the The Wall Street Journal, “dozens” of engineers working at the secretive Lab126 hardware development facility have been laid off. Located in Silicon Valley, the lab is used to design Amazon’s entire range of hardware products including tablets, mobile and TV. Apparently, the majority of people dismissed are those involved in the Fire phone’s development.

This isn’t a surprising revelation given the financial repressions of the Amazon Fire handset’s failure. Only three months after the product’s launch, Amazon accepted a $170 million loss to offset the lost value of the unsold Fire phones. Additionally, the company still had $83 million in its inventory at the end of this period. Even Amazon’s marketing might and huge discounts couldn’t entice people to purchase the Fire handset. Technically, it’s a fairly impressive device but the Fire operating system restricted the amount of apps available compared to Android and iOS handsets.

It’s currently unknown if Amazon will also ditch other more successful hardware projects such as the Fire TV Stick. I doubt this will be the case, as the company tries to compete with the Apple TV and offer a viable alternative to Netflix.

Was there anything in particular which deterred you from buying the Amazon Fire handset?

Thank you Engadget for providing us with this information.

Topics: , , ,

Support eTeknix.com

By supporting eTeknix, you help us grow. And continue to bring you the latest news, reviews, and competitions. Follow us on Facebook and Twitter to keep up with the latest technology. Share your favourite articles, chat with the team and more. Also check out eTeknix YouTube, where you'll find our latest video reviews, event coverage and features in 4K!
eTeknix FacebookeTeknix TwittereTeknix Instagram

Check out our Latest Video

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

  • Be Social with eTeknix

  • itvpros.com
  • Poll

    Who Is Your Favourite Graphics Card Brand?

    View Results