Amazon is taking a big hit on the Fire Phone, it looks like the e-commerce giant took a big risk with the investment in the 3D technology, and theinvestment has not paid off.

Speaking to Fortune, Senior Vice President of Devices David Limp said "We didn't get the price right," on the Fire Phone. "We thought we had it right, but we're also willing to say 'we missed.' And so we corrected."

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This is the first time any executive from Amazon has spoke about the Fire Phone, outside of earnings reports. The Fire Phone is currently costing $170 million in inventory space and Amazon is sitting on $84 million of Fire Phone inventory that it can't move.

For Amazon, this could not come at a worse time, with an operating loss of $544 million in the third quarter and an expected operating loss of $600 million in the fourth quarter. The company is rapidly losing investors, with most of them complaining about Amazon's lack of profit over the past decade.

The e-commerce giant is priced at $150 billion, but as ex-CEO of Microsoft Steve Ballmer pointed out "They don't make money" and should not be considered, to any investor, a real company.

Amazon missed a lot of areas with the Fire Phone, but the big mistake was showing off the 3D display and Firefly purchasing app as the two main features. It made the phone feel like a 3D buying machine for Amazon; not what customers are interested in.

Even though the first iteration was a failure, it is possible Amazon will return with the Fire Phone 2, updated with new specs, better display and cheaper price.

The original Kindle Fire and Kindle Fire HD offer excellent value for money, but in the past two years Amazon has been upping the price of their devices, the most recent example being the Kindle Voyage for $199.

Having these higher prices may work out, but sales of the Kindle Fire HDX, Fire Phone and Kindle Paperwhite point to lackluster sales, compared to the cheaper options.

TagsAmazon, fire phone, Fire OS 3.0