Amazon is looking to take a bigger share of the lucrative smartphone market by extending its Fire phone availability in Germany and the U.K. starting this month.
Amazon, the world's largest online retailer, is not giving up on its struggling Fire phone after a sluggish start in the United States. The e-commerce giant announced that its flagship smartphone will enter the European markets starting with Germany and the U.K. this month through its partnership with Deutsche Telekom and Telefonica's O2. The retailer is taking pre-orders for the Fire phone before it is widely available in the two countries Sept. 30.
"We should make money when customers use the product, not only when they buy it." The smartphone is built around Amazon's core shopping service, which makes it easier to find products for sale online, Ian Freed, Amazon's vice president for the smartphone, told Bloomberg in an interview. "That's served us well in other businesses."
Deutsche Telekom is Germany's largest wireless carrier and O2 is a renowned and trusted brand in the U.K. The Fire phone's availability on these two networks will give a broader window of sales through exposure to a wider audience. The announcement comes a few hours short of Apple's biggest debut of iPhone 6 at Tuesday's event. The retailer seems to be shaking things up a little bit before the Cupertino tech giant sweeps away the attention.
Apple's new iPhone 6 is expected to take the market by a storm. The company's strategy to integrate big screens in the smartphone is the first move in several years.
Amazon did not reveal the expected sales for its Fire phone in the two new markets but the company remains optimistic about the phone's success due to its unique functions that are not offered in other phones.
Key highlights of the Fire phone include a 4.7-inch 720p display with a 2.2GHz processor, 2GB RAM, 13MP rear camera, 2.1MP front shooter, 32GB/64GB optional storage, Fire OS 3.5.0 and a 2,400mAh battery. Unique features like Firefly, free Prime subscription for 12 months, Dynamic Perspective, unlimited photo storage and more certainly are and added attraction.
Amazon also slashed the price of its Fire phone in the US, from $199 to 99 cents on AT&T's two-year contract. The strategy will be applicable in the new markets as well. In Germany, Deutsche Telekom will sell the phone for one euro and a 45 euro ($58) per month contract. O2, however, will give away the phone for 33 pounds ($53) a month plan, without any upfront cash.
