Amazon Shares Continue Slide as Fire Phone Launches
Amid slumping second-quarter earnings that revealed massive spending by Amazon, the Internet retailer's new smartphone hits AT&T stores today.
The Fire Phone, which features a product-ID solution called Firefly and a 3D display, has received tepid reviews, with many saying the device gimmicky and has a limited audience.
AT&T is the exclusive carrier for the Fire Phone, which comes with 32GB of storage and is available for $27.09 a month with AT&T Next 18 or $199 with a two-year contract. The 64GB version is $31.25 a month with AT&T Next 18 or $299 with a two-year contract.
For a limited time, Amazon is offering those who purchase the Fire Phone a full year of Amazon Prime and 1,000 Amazon Coins (a $10 value) to use on apps, games, and in-app purchases. If you're already a Prime member, your membership will be extended an additional 12 months.
In its second quarter earnings, Amazon reported a $126 million loss even as revenue jumped by 23 percent. Shares fell 10 percent on the report. Many believe that continued investment in big projects like the development of the Fire Phone and the a new grocery delivery serivce are weighing profits at the company.
Amazon forecast that it will post a loss in the $800 million range for the current quarter.
Shares of Amazon were down 11.21 percent to $318.42 as of 9:32 CST Friday.