Amazon Fire Phone’s AT&T Exclusivity Flops: ‘Discounting or Expanding Availability’ Now Imperative

By Kelly Teal Comments
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The Amazon Fire smartphone had potential. A lot of it. With its Dynamic Perspective sensor system, 3-D-esque parallax display and SDK capabilities, among many other features, the device seemed poised for success.

But Amazon’s exclusivity clause with AT&T appears to have killed that potential.

Research consultancy Chitika this week released a report that showed the Amazon Fire is not selling well in North America, and the AT&T exclusivity well may be to blame for the flop. The same situation occurred when, a year ago, only Verizon was allowed to offer the Motorola Droid Ultra, Chitika said.

“Both the Fire Phone and Droid Ultra charted relatively similar growth rates following their respective launches, with the latter experiencing a slightly steeper rise," Chitika wrote this week. “In this context, the somewhat mild adoption of the Fire Phone may be seen as an expected consequence given the smartphone’s carrier exclusivity."

Amazon CEO Jeff Bezos has said he intends to be patient about the Fire Phone’s success, but Chitika isn’t convinced about that approach.

“Discounting or expanding the availability of the device would likely help boost adoption, but it may be more likely that Amazon refocuses its efforts for a second generation of the Fire Phone and the accompanying software in order to make a larger mark on the industry," the firm said.

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