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Amazon Is Taking A $170 Million Charge For Unsold Fire Phones

Steve KovachOct 24, 2014, 03:08 IST

It looks like Amazon's first smartphone hasn't been a hit.

The company announced during quarterly earnings Thursday that it would take a $170 million charge for unsold Fire Phones and other related costs. The Fire Phone is sold exclusively through AT&T in the US.

The Fire Phone went on sale this summer, but all indicators pointed to disappointing sales. Reviews were pretty bad across the board.

Business Insider also stopped by several AT&T stores during the Fire Phone's first few weeks and found that very few customers were buying the device.

Finally, Amazon and AT&T also slashed the Fire Phone's price to $0.99 with a two-year contract in September, a sign that it wasn't selling well. It originally sold for $200 with a contract.

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.