The Amazon Fire Phone Fail

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The Amazon Fire Phone

fail
We all know Amazon. As the world’s largest online retailer,
most of us interact with the company in one way or another.
Perhaps you use Amazon Prime to get packages delivered to
your doorstep at lightning speed, or maybe you’ve turned
your house into a smart home with an Amazon Echo. But
there’s one Amazon product you’re not using and likely never
will: an Amazon Fire Phone.

The Amazon Fire Phone debuted in July 2014. It was


Amazon’s attempt to penetrate the smartphone market and
position the company as cool and innovative instead of just
cheap and convenient. There was plenty of fanfare leading up
to its release—after all, Amazon’s Kindle and Echo products
were hugely popular with consumers. Why would the Fire
Phone be any different?
The Fire Phone flopped, and fast. Nobody wanted it. Its hefty
price tag put off many Amazon customers, its 3D features
were flashy but largely useless, and its Fire OS operating
system was incompatible with some of the most popular apps
out there, like Google Maps. Two months after its release and
less than 35K units sold, Amazon dropped the price of the
phone from a base price of $650 dollars to just 99 cents with
a two-year contract. Amazon reportedly took a $170 million
loss on the device and had $83 million left in inventory.
What went wrong? Amazon built the Fire Phone off of
assumptions about its customers. They made assumptions
about what customers cared about, how much they were
willing to pay, and even the apps they’d want on their phone,
and all of those assumptions proved incorrect.

Amazon’s three fatal


assumptions
Learning design is, in many ways, the same as product
design. And similar to product design, there’s danger in
making assumptions during this process—something Amazon
experienced firsthand. Let’s take a closer look at three
assumptions Amazon made during the design process that
ultimately made the phone unsuccessful.

Dynamic perspective
One of the Fire Phone’s flagship features was dynamic
perspective. Amazon’s team invested an inordinate amount
of time and resources designing a 3D display for the phone,
including five front-facing cameras and eye-tracking
technology. Sure, it was a cool feature—but it wasn’t one
customers asked for and it wasn’t enough to lure them away
from their Apple or Samsung phones.
Firefly
The Fire Phone was the first smartphone to offer barcode
scanning technology. They coined it Firefly, and it allowed
customers to use their phone’s camera to scan barcodes on
products in stores and then buy it on Amazon.

There are some key flaws at play here. First, Amazon


assumed customers would rather purchase products on
Amazon than simply buy them in the store they’re already at.
Second, they overlooked consumer trends that customers
preferred to do online shopping from desktop computers
rather than phones. The value that Firefly offered didn’t
resonate with consumers.

Fire OS
Instead of using an existing operating system, Amazon opted
to create its own by using a forked version of Android. That
meant Fire Phone users couldn’t access some of the most
popular Google and Android apps.

Amazon assumed that developers would jump at the chance


to develop apps for Fire Phone—instead, it was an empty
dance floor. Developers stayed loyal to the major operating
systems already out there, because that’s where the money
is. There was no incentive for developers to build for the Fire
Phone and as a result, no incentive for consumers to buy it.

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