Amazon Representative Shows Off the 3D Map Features of the Company's New Fire Smartphone at the Company's Campus in Seattle
IN PHOTO: An Amazon representative shows off the 3D map features of the company's new Fire smartphone at the company's campus in Seattle, Washington June 18, 2014. Amazon.com Inc's new cellphone seeks to offer shoppers instant gratification by recognizing thousands of products, television shows and songs and allowing users to immediately buy them - on the e-commerce giant's own site, of course. REUTERS

Advertised as the first smartphone from Amazon, the Fire phone has failed to attract many buyers. PhoneArena claims that Amazon has plenty of unsold stock of Fire Phone. Moreover, the Fire Phone has received poor customer reception.

The senior vice president of devices of Amazon, David Limp, stated in an interview with Fortune that they did not price the device correctly. According to CNET, when the Amazon Fire Phone was launched, the 32 GB model was priced $199 and the 64 GB model had a price tag of $299. Amazon has always been known for selling items at very affordable prices, and the expensive price of the Amazon Fire Phone has misfired badly.

PhoneArena highlights that the issue with the statement released by Limp is that what he has expressed ignores the different problems of the handset. When you look at the customer reviews of the Amazon Fire Phone, you will find that many have complained on issues like poor battery life, overheating, unfriendly user interface and lack of apps.

Amazon has now dropped the price of 32 GB model to $99 with a two-year contract with AT&T. Without contract, the device carries a price tag of $449. PCWorld claims that the price cut has helped in boosting the sales of the Fire Phone. PhoneArena states that even if Amazon had sold the Fire Phone for free, the device would have still encountered poor response from the audience because of the multiple hardware and software issues of the device.

PCWorld states that even though the first smartphone from Amazon met with disastrous sales, the manufacturer promises to provide consistent support for the handset through software updates. Limp has highlighted that the Kindle e-reader also faced poor response at the beginning and it is only after rolling out several iterations, it gained popularity.

PCWorld adds on to Limp's statement on Kindle by stating that when Amazon manufactured the Kindle e-reader, the company was making the e-reader market. However, with the Fire Phone, the company is entering a market that is already flooded with smartphones from numerous brands.