Amazon Risk-Taking Continues Amid Unpopularity Of The Amazon Fire Phone

Amazon Risk-Taking Continues Amid Unpopularity Of The Amazon Fire Phone

Amazon will continue to take risks despite the unpopularity of the Amazon Fire Phone. The first smartphone of the company was a bust when it was initially offered in the market. This was revealed recently by Jeff Bezos, CEO of the company.

Bezos made the revelation during the Ignition conference of Business Insider. He defended the aggressive growth strategy of the company in spite of calls by investors to rein in the spending of the company. He said a small number of huge successes offset dozens of things that do not work. He added that the company may have to struggle later when it stops taking risks. Bezos highlighted the gains of the company from the Kindle tablet, its third-party online marketplace and data center business.

The revelation of Bezos indicated that he unwilling to slow down on the push of the company into new businesses. While a number of the services and devices offered by the company may have failed, he encouraged employees to continue searching for the next big thing in tech.

The company has incurred losses in the last two years due to its recent investment cycle, which caused jitters across Wall Street. Last October, the company reported a loss of $437 million for the third quarter.

Bezos was pressed by the interviewer about the failure of the Fire Phone that entered the market last July. The smartphone did not make an impact on the market. The price of the device went down from $200 to $0.99 with a two-year service contract within two months after it was offered. Bezos responded by indicating that a number of iterations are necessary before something good comes out of it.

Bezos said that he is asking everyone to stay tuned for upcoming developments in the Amazon Fire Phone.

Posted by James Fried on Saturday December 06 2014, 4:47 AM EST. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0