Amazon to Face Heavy Losses as Fire Phone Gets Cold Response

Amazon is facing some crucial loss because of the poor performance and cold response for the Amazon fire phone by the people. The Fire phone did not work to that extent as it was expected before its launch in market, it a real bad luck for Amazon that it’s fine creation also unable to capture the attention in the series of smart phones. The company issued its third quarter earnings report that shows Amazon losses have increased to $544 million (about £339, AU$621).as compared to the last year's $25 million (about £12m, AU$22m) operating loss, it has been an increase of 20 times than the last year. 

Undoubtedly, the major contributor in this loss is the recent unsuccessful release of Fire phone. This experiment has proven as a big lesson for the company that put it in to a great situation. “The company took a $170 million (about £106m, AU$194m) hit stocking and selling the unpopular phone” noted by the Amazon Chief Financial Officer Tom Szkutak. According to the reports Amazon also has an $83 million (about £51m, AU$94m) worth Fire Phone as inventory in its warehouses. Apparently it seems to be like the hardest “No” to the Fire phone by the targeted audience. 

Other than this, Amazon is not just confined to the Fire phone but it has invested a lot on to the development of new products including the Fire TV and Kindle Voyage and a new Amazon Dash barcode reader. And the company put up a great financial load on its acquisition of Twitch for $970 million (about £605m, AU$1.1b) recently.It is always said that when there is a hard luck nobody can help but and here we have a visible practical example. Surprisingly, it is not a complete hard time of Amazon as its net sales for this third quarter increased by 20% that is up to $20.58 billion (about £12,83b, AU$23.49b) which is a great support apparently. Although these are good numbers but failed to impress investors. The last hope for the company is the Fire Phone 2 it might be able to perform well but still the Phone experiment is failed to have any attention from the critics and the users as well, it will be a difficult job for a not so good looking Amazon phone to do it. 

This post is written by the owner of Tech Villas. Tech Villas is a tech base website where you can get news, reviews about latest technology.