By Tess Stynes
Amazon.com Inc. said it is offering its Fire phone for 99 cents
when customers sign a two-year contract, a promotion for its
slow-selling smartphone that comes a day ahead of rival Apple
Inc.'s planned unveiling of its redesigned iPhone.
Amazon began selling the Fire smartphone at $199 in July, part
of efforts to keep customers buying more from its namesake retail
website. Analysts at Baird had commented that the new Fire
smartphone was about as popular as Windows Phones and less desired
than devices from struggling BlackBerry. Devices made by Samsung
Electronics Co and Apple dominate the market.
Amazon has been hurt by losses recently that reflect the
company's heavy investments in new businesses and services that
investors have worried are stretching the Seattle company too thin.
This year it has released an array of new offerings including a
hand-held grocery-ordering device, unlimited e-book rental and
streaming services, and its first set-top box and the
smartphone.
On Monday, Amazon said the smartphone promotion is for its 32
gigabyte Fire phone, which is available in the U.S. on AT&T
Inc.'s network. Customers can also put nothing down and pay $18.75
a month, also for two years, with AT&T's NEXT 18.
Amazon also has offered discounts on its Fire TV set top box,
which came several months after they made their debut to mixed
reviews.
Write to Tess Stynes at tess.stynes@wsj.com
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