Amazon's 'Fire' Sale

Amazon cuts Fire smartphone price to $199 without contract.
4:14 | 11/26/14

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Transcript for Amazon's 'Fire' Sale
It's. I'm tired Hernandez in New York is the financial markets close on Wall Street ahead of the Thanksgiving holiday this is story stock. Amazon the on line that he just greatest star back in July when it released its. Fire Smartphone but just four months after the release the phone which cost 650 dollars off contract by. Can now be had for a 199. Dollars not the first price cut. However as back in September the price for eight fires Smart phone on a two year contract was cut to 99 cents. To explain what's behind Amazon's. Fire sale who joined by Donna camera CNET hi Donna. I send my agent and I'm rates it would CEO Jeff Bezos debuted the fire did have some unique features right. Yes he you know touted a lot of different features that other phones don't have our or other than the more well known films don't have like 3-D imaging. Some legal dynamic perspective which actually lets you kind of look around things on the phone. And also lot of features that involve shopping so it was certainly it their way of trying to set themselves apart from the rest of Smartphones up there. So why didn't fire catch on with consumers especially. Giving Amazon's deep reach as America's go to e-commerce site. Yet you know I mean I think a lot of people will say. And had to do. Partially with their exclusivity with eighteen T. I mean there were only on Latin that carrier so what happens of that meeting that AT&T is like the fact largesse. Provider. You're only gonna get to some of your customers so that was part of the issue and then I think another big problem list price a lot of people say it was priced too high. You were expecting something cheaper from Amazon or at least lower price from Amazon but still good quality. Which is what it's known for when it does its devices so when that came I think a lot of folks Jess. Couldn't justify those those features for that price. OK so out of price is a lot while ward does this very hat you know grant his fate it's gonna jump start sales or is this just an inventory down. It it's really hard to say because I think even though the prices lower now when when the phone first and our viewers really knocked it for that. Who really called love those features that they say it's up until the part as gimmicky. Three imaging is as been on other phones that never really works or never really provided enough of reason to happen to have a purpose on the phone so I think this is the same case here. Where a lot of people didn't see why they needed that kind of 3-D imaging so you never know I mean. The deals are there maybe people Philly picking them up but it's kinda hard to overcome that reputation went out there. We've seen pays us dip his toe is and phones tablets even a device called echo what the overall plan here with Amazon and device. The bottom line for Amazon always has to get into glamour stuff so Geoff basis months utes have easy act fast to Amazon's. Huge inventory of stock to buy. And with every device you've seen this and he either in incorporating actual features like firefly witches. On the fire phone that lets you like scan certain items. Onto the phone and and theme of the person very quickly or integration of their shop wants they're tablets. And even with the Acco means. If you think about what it can do it and a lot of people think eventually. At they'll be able to tell you know what you need before you even know it just based on the questions you ask it. So he asked like what's the weather and Kelly liking you live on the East Coast at the can can guess maybe you're taking a trip. And so you can interest LA maybe should buy some screen like those are the types of things. That base is probably wants you to do so that they can get you to spend more money on their side. Well we happy holiday shopping period just about to start Monday is coming up so is this going to be happy holidays for Amazon. I've tried said link Amazon is expected to bring a lot of sales this year but they've also warn investors fat. They may not be as much as they were hoping so it remains to be seen what's gonna happen this year for Amazon. In turn its biggest holiday shopping season. From Anthony dining at have a great Thanksgiving thank you. You've been watching storied stocks David abcnews.com for your latest headlines I'm tired and it's in New York.

This transcript has been automatically generated and may not be 100% accurate.

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