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Amazon Cuts Struggling Phone’s Price to 99 Cents

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Re: Amazon Cuts Struggling Phone’s Price to 99 Cents

#31
post #12

Earlier quoted context omitted.

This may seem weird in Silicon Valley, but even in the US, a lot of people don't have $200 to pay for a phone.

Price point does matter. There is a big market for the $0 phones (its what pushed apple to offer a budget iphone). I think badusername's point was that price is a secondary determinant for people. The $200 phones everyone wants but not everyone can afford sell very well once they drop down to $0. However, the $200 phones no one wants sell just as well at $0.

There is even a huge market for $500 phones. But when you slash the price of your $200 phone to $.99 it's not a good sign.

Imagine Apple dropping the price of the iphone below the BOM, that would send their stock reeling.

Re: Amazon Cuts Struggling Phone’s Price to 99 Cents

#32
post #17

Not sure why this phone wasn't $399 off contract in the first place. Amazon is repeating HP mistake of thinking they have product that is the same level as Apple and pricing it the same. The Touchpad was released at $499 the same as the Ipad 2 at the time. For a company that is well known to have thin margins were they thinking $649 is something people were going to pay? Get the phone out with a lot of people using i…

[deleted]

Re: Amazon Cuts Struggling Phone’s Price to 99 Cents

#33
Kindle is Amazon's best consumer brand. I don't know why they made a Fire phone. They should have made a Kindle phone, and positioned it as the phone for "Readers".

Positioning matters the most, of course, but I think they could have actually put in some features designed specifically for reading on a smaller screen: 1) scroll wheel that you can use with your thumb to easily flip or scroll through windows of content, with precision. Sort of like the scroll button on a mouse, but on the side of the phone, positioned so you can use your thumb on it, while the phone is held one-handed. 2) Maybe an e-ink screen and an insane battery life. Might suck for videos, but it would definitely be a differentiator and might attract people that love to read on their phones. 3) Cut down on the apps and other features. Go the opposite direction from other phone makers and make a very basic phone. I'm talking about just phone calls, calendar, calculator, browser, email, text, camera. Nothing else. And in exchange for that, the consumer gets a very cheap phone, and insane battery life.

I think some people would like that. I would. I have enough devices to do my media consumption on. I would love to have a phone that last 2-3 days on one charge again ... like my old Nokia used to. I love how my Kindle reader lasts the whole month. I don't expect that out of a phone ... but if you gave me a week long battery, and an e-ink reader built into that ... you have me as a customer. I'll watch my Youtube and Facebook when I get home.

I might be too old to be relevant. But I'm sure there are a few snowflakes like me around.

Re: Amazon Cuts Struggling Phone’s Price to 99 Cents

#34
post #27
post #15

Earlier quoted context omitted.

Then they probably don't have enough money for a subscription service, and if they do, they're better off with a non-smart (dumb?) phone.

There are some subscription services that are quite affordable and not having a cell phone in the modern world is not really an option.

You need to compare "quite affordable" with the $200 price of a smart phone. Because $200 seems "quite affordable" for a smart phone that can do pretty much anything and everything. And I never suggested not having a cell phone.

Re: Amazon Cuts Struggling Phone’s Price to 99 Cents

#35
post #25
post #15

Earlier quoted context omitted.

Then they probably don't have enough money for a subscription service, and if they do, they're better off with a non-smart (dumb?) phone.

The term you're looking for is "feature phone" http://en.wikipedia.org/wiki/Feature_phone

Spot on. Thanks

Re: Amazon Cuts Struggling Phone’s Price to 99 Cents

#37
post #12

It's interesting how the dynamics work these days, and how Amazon just doesn't seem to be getting it. People are perfectly happy to sign a 2-year contract on a well-designed fully-rounded functional phone, they do that by the tens of millions. They even pay $200 to get the phone. The phone has become personal, and also a necessity as you go through the day. Going through 2 years on a badly designed phone just because…

This may seem weird in Silicon Valley, but even in the US, a lot of people don't have $200 to pay for a phone.

Sure, there will always be some people who can afford a $200 phone, and others that can't. But for those who can, I'm amazed at how much emphasis is placed on the upfront cost of the phone itself, versus the total cost over the 2 years of a normal contract. Lets just pick easy numbers and say your monthly bill is $100, which is probably on the low end, but it still illustrates my point. Over two years, you're going to pay $2400 for the service. $200 vs $400 vs $600 is the wrong comparison to be making, because it's less than 20% of the total cost.

That's why these marketing promotions really feel scummy to me. "Buy Mom a smartphone for Christmas" is actually "Show Mom how much you love her with a two year, $2500 financial obligation".

Re: Amazon Cuts Struggling Phone’s Price to 99 Cents

#38

Kindle is Amazon's best consumer brand. I don't know why they made a Fire phone. They should have made a Kindle phone, and positioned it as the phone for "Readers". Positioning matters the most, of course, but I think they could have actually put in some features designed specifically for reading on a smaller screen: 1) scroll wheel that you can use with your thumb to easily flip or scroll through windows of content,…

A 'phone for readers' designed for people like me (and perhaps you?) who use their phone as a small text reading device would at the least be "very interesting".

An improved shopping experience on my phone is as exciting as seeing a blue sky day in summer. Woot?

Re: Amazon Cuts Struggling Phone’s Price to 99 Cents

#39

Kindle is Amazon's best consumer brand. I don't know why they made a Fire phone. They should have made a Kindle phone, and positioned it as the phone for "Readers". Positioning matters the most, of course, but I think they could have actually put in some features designed specifically for reading on a smaller screen: 1) scroll wheel that you can use with your thumb to easily flip or scroll through windows of content,…

They are mainly interested in the phone as sales devices. To sell stuff you need color.
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