Amazon.com Inc., the world’s largest online retailer, cut the price of its Fire smartphone to 99 cents with a two-year contract through AT&T Inc., seeking to boost adoption of the device six weeks after it went on sale.
The 32-gigabyte phone previously cost $199 through AT&T, the exclusive wireless carrier for the device. The Fire phone comes with 12 months of free membership to Amazon’s Prime fast-delivery and media-streaming service, the Seattle-based company said today in a statement.
The Fire, which went on sale in the U.S. on July 25, lets users capture information from items such as business cards and paintings, and allows them to give commands by tilting the device. Amazon Chief Executive Officer Jeff Bezos has been investing billions as he pushes into businesses such as cloud computing, warehouses and gadgets -- spending that has dragged down profit.
Fire phone was designed to give users easy access to Amazon’s content and services, though reviewers have criticized its weak battery and lack of applications. It competes with smartphones from industry leader Samsung Electronics Co. and Apple Inc.’s iPhone, which Apple is set to update at an event tomorrow.