Amazon.com cut the price of its Fire smartphone to 99 cents with a two-year contract through AT&T Inc., seeking to boost adoption of the device six weeks after it went on sale.
The 32-gigabyte phone previously cost $199 through AT&T, the exclusive wireless carrier for the device and the second-largest mobile carrier in the U.S. The Fire phone comes with 12 months of free membership to Amazon’s Prime fast-delivery and media-streaming service, the Seattle-based company said today in a statement.
Amazon is slashing the price of the Fire handset a day before Apple Inc. holds an event where the iPhone maker is set to announce bigger-screen phones, people with knowledge of the matter have said. Competition in the smartphone industry is intensifying, leading to reduction in prices for some phones that aren’t selling as well. In May 2013, AT&T said it was considering whether to stop selling an HTC Corp. phone that integrates Facebook Inc. social-networking features after cutting the price to 99 cents.
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