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Amazon Gives Up Fire Phone

|Includes: Amazon.com, Inc. (AMZN)

Amazon, after almost a year, has finally realized that it was the wrong time to launch its Fire Phone and has decided to officially discontinue it.

The e commerce giant Amazon.com has decided to pull back it's Fire Phone and has laid off a number of engineers who were working on this failed smartphone.

The American retailer was simply late in joining the smartphone market. According to the Wall Street Journal, this is the first time in the history of Amazon that workers like that are going to be fired. The number of people working in Lab126 unit is 3,000, although it is still unclear if all these engineers will be losing their jobs as Amazon has declined to comment or provide further details on the matter.

There were a lot of projects that were being worked on in the company's secret Lab126; now these projects will never come up on surface. A few projects that the company was working on were 14-inch larger screen tablet, Nitro, a device used for creating shopping lists, and a projector named Shimmer.

Amazon's attempt to launch a product, with hopes of wowing the market, with unique features that people had never seen was supposed to take everyone by surprise, but failed to do so as it was too late in the market. Most smartphone users had already made up their mind on Samsung, Apple smartphone to move to Amazon new Fire Phones. Fire Phone was launched last year during the summer and almost after the year the firm has finally accepted the fact that it was a failed product and experiment and has officially decided to discontinue the product.

The online shopping company has been working on a product, which it tends to keep working on, that you could put in your kitchen and via voice commands it will be able to order products for you, this device is called Kabinet. Even though the retailer has failed to provide its customers with a smartphone, it is not planning on backing out from providing its customers with 3D technology. The engineers, who have not been fired from Lab126, are supposedly working on a 3D tablet that, without proper glasses, can pop out of the device and present a 3D image while others in the Lab are still working on Kindle e-reader which according to the company will be able to last for almost 2 years without being charged.

According to William Stofega, Program Director at analyst firm IDC, said that it is not easy being a part of the smartphone business, even for a company that makes large margins and is quite popular with it customers can fail in such a competitive market. Furthermore he said that even though Amazon came up with a unique device with a right idea like Fire Phone, it might not have been the right time to launch it. He added that it is important that the company adds apps that people are interested in using and that people are not interested in using single-purpose phones.