Amazon Slashes Fire Phone Prices Again

(Los Angeles Times/TNS) -

The cuts keep coming.

Amazon has slashed the price of its struggling Fire smartphone again, to $199 for an unlocked 32-gigabyte version with no contract.

The $250 discount comes as the Seattle-based company struggles with sales — the Fire Phone has flopped since it began selling in July. In September, Amazon cut the price of an unlocked Fire without a contract from $649 to $449. The company also cut the price of the phone with a two-year contract from $199 to just 99 cents at that time.

Last month, Amazon’s chief financial officer, Tom Szkutak, told investors that the company took a $170 million charge because of slow Fire sales. Amazon had $83 million worth of unsold phones at the end of the third quarter, Szkutak said.

The Fire Phone will continue to come with a free year of Amazon’s Prime service, normally $99 per year. Prime offers access to features such as two-day shipping and access to Amazon Instant Video.