Does Amazon Have An Unsustainable Pricing Strategy?

Does Amazon Have An Unsustainable Pricing Strategy?

As seen in Tech Times, Amazon has been profiting from its new Fire smartphone, but will need to sell more in order to truly recoup its investment given handset features. Senior director, Andrew Rassweiler states "the features that differentiate the Amazon Fire Phone - particularly its unique Dynamic Perspective interface required the development of specialized hardware and software".

Ian Fogg, senior director for mobile media at HIS, states Amazon's high risk launch price strategy is unsustainable for a smartphone entrant like Amazon, simply having a well-known brand on the box is not enough to sell smartphones, as Nokia and Motorola know well.

Industry watchers note Amazon's pricing and sales strategy with Fire is quite different than its Kindle e-reader approach where the giant e-tailer took a loss on costs to obtain the e-reader into the market.


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