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Amazon reports a $544m operating loss and takes a $170m writedown on Fire phone

posted Oct 23, 2014, 9:08 PM by Barny CK
Amazon has announced a dismaying 3rd quarter earnings with an operating loss of $544 million and the bulk of the problem is poor sales of its first smartphone, the Fire phone. The Fire phone was launched in June this year to much fanfare but it quickly lost the buzz. The $170 million writedown affects the phone's inventory valuation and supplier commitment cost. In September, a day before Apple's unveiling of the iPhone 6 and iPhone 6 Plus, Amazon slashed prices of the Fire phone from $199 to just 99 cents.