Amazon shrinks hardware efforts following Fire phone flop

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Amazon makes drastic changes to prevent another Fire phone disaster.
Photo: Amazon

Amazon has dismissed dozens of engineers and ditched a handful of hardware projects following its dismal attempt at tackling the smartphone market, according to a new report.

The retail giant has also restructured what’s left of its hardware division, combining what was two separate units into one.

Amazon’s unsold Fire Phones are costing it $170 million

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During its earnings call yesterday Amazon gave some clues about just how spectacularly its Fire Phone business is tanking — making it seem one of the worst tech ideas since the RMS Titanic shipped without lifeboats.

How bad are we talking? At the end of its disappointing third-quarter the company still has a massive $83 million worth of unsold inventory sitting around.

It’s now taking a $170 million charge “primarily related to Fire phone inventory valuation and supplier commitment costs.”

Practically nobody’s buying Amazon’s Fire Phone (including Prime members)

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Even Amazon chief Jeff Bezos can't sell the world on the Fire Phone. Photo: Roberto Baldwin/The Next Web

Nobody would ever call Amazon’s Fire Phone a hit, but even the company’s most loyal shoppers are apparently avoiding the phone like the plague.

A new report from Consumer Intelligence Research Partners says that while the Amazon Prime subscription service continues to attract new members, the Fire Phone “has achieved virtually zero market share.”

Early reviews very chilly concerning Amazon’s Fire Phone

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Jeff Bezos may be ready to roast the Galaxy and iPhone with his much-discussed Amazon Fire Phone, but judging from the first round of reviews, the handset is more of a damp squib than a firestarter.

Ahead of the smartphone’s launch tomorrow, and with the embargo lifted on the early review unit handsets, we’ve finally got an idea of how Bezos’ intriguing pet project has panned out.

And, unfortunately, “panned” seems to be the right word to describe it.

First impressions of Amazon’s Fire Phone plus iMac gets cheaper (and slower) on The CultCast

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There’s a fire in the Amazon! I’m so sorry. Bad jokes aside, on this week’s CultCast we’ll tell you what we love and don’t about Amazon’s much-buzzed debut mobile phone. Plus: the iMac just got a lot cheaper… and slower; another Weibo leak reportedly shows a huge 5.5-inch iPhone 6; the cool additions to iOS 8 and Yosemite’s 2nd betas; this summer’s hottest mens’ bathing suit attire; plus, you asked, we answer—it’s an all-new CultCast Q&A!

Our thanks to TextExpander for supporting this episode! TextExpander for Mac saves you time and effort by expanding short abbreviations into frequently-used text, pictures, code blocks, and more, and it’s an application we use every single day. Try it out for free at Smilesoftware.com/cultcast.


Click on for the show notes.