Samsung has had trouble with the Galaxy S5, reportedly selling a quarter fewer S5s in its first three months than Samsung sold S4s over the same period after its launch.
Given the competitive environment and because it was its first phone, Amazon might well have started at a much lower price.
"The key to premium phone success is to add enough customer-valued differentiators to warrant the price," Moorhead said. "Yes, Amazon priced the Fire phone too high, but had the special features been valued, that wouldn't have been the case."
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