Amazon's first smartphone, the Fire wasn't able to attract a lot of buyers and received unsatisfactory customer reception.

According to reports, Amazon keeps loads of unsold Fire Phone units. Amazon VP of devices David Limp said in an interview the company didn't set the device's price correctly.

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When it was launched, the 32 GB Amazon Fire Phone sold for US$199 while the 64 GB variant was priced at US$299. Amazon was known for its affordable prices and its expensive Amazon Fire Phone backfired badly.

Analysts said Amazon pricing the Fire Phone alongside premium smartphones had no good reason. They said it was surprising the company matched the pricing of Apple, sending a message that the hardware is as high-end as its competitors. Amazon needed to show a much cheaper differentiated phone, however.

The 4.7-inch Fire phone comes with gesture control and 3D imaging, which are currently groundbreaking and expensive features. It's not the only issue.

Amazon Fire Phone has received complaints such as overheating, poor battery, lack of apps and an unfriendly user interface. Amazon already shifted its strategy by offering tablets that are significantly discounted to attract consumers.

Amazon dropped the 32 GB Fire Phone price to US$99 with a two-year service contract with AT&T.

Without a contract, the Fire Phone sells for US$449, a price that is said to have helped boost the device's sales. Other reports opined the Fire Phone will still receive poor audience response even if it was given away for free because of its software and hardware issues.

TagsAmazon, amazon fire phone, Fire Phone Specs, Fire Phone Features, Fire Phone Price