Amazon Reports $170 Million Writedown Due to Unsold 'Fire' Phones

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
1 min read
This story originally appeared on Reuters

Amazon.com Inc took a $170 million writedown in the third-quarter largely related to its unsold stockpile of Fire smart phones as well as supplier commitment costs, Chief Financial Officer Tom Szkutak said on Thursday.

The online retailer, which also issued a disappointing fourth-quarter outlook that sent shares down 9 percent in after-hours trading, ended the third quarter with about $83 million worth of Fire phone inventory.

The Fire phone debuted this summer to both lackluster sales and reviews. Last month, Amazon cut the price of its phone to 99 cents with a two-year contract with AT&T.

(Reporting by Deepa Seetharaman; Editing by Chris Reese)

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
From business to marketing, sales, design, finance, and technology, we have the top 3 percent of Experts ready to work for you. Join the future of work and learn more about our Expert solutions!

Latest on Entrepreneur