International commerce corporation Amazon has announced that it will be taking a $170 million (£105 million) charge "primarily related to Fire Phone inventory valuation and supplier commitment costs" - essentially saying that their new smartphone hasn't lived up to the hype.
The Fire Phone arrived on the market at around £385 per model, but in America a similar price was slashed to just 99 cents if the phone was bought with a two-year subscription to AT&T.
According to Re/code, Amazon CFO Tom Szkutak labelled the new phone "a good device in a very competitive market" – outlining his belief that the Fire Phone needs time to settle into the consumer mindset.
It may be a case of wait and see for Amazon, which packed the Fire Phone with a number of extra features and add-ons to increase interest. Everyone who snaps one up gets free year-long subscription to Amazon Prime, the premium two-day delivery service popular on Amazon's website.
Getting users onto a Prime program may well be key to Amazon's profits, as studies have found that those on the Prime program spend around twice as much as those without it.
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Whether Amazon pushes ahead in developing a new Fire Phone is yet to be seen. It's possible that the company might want to pick a more aggressive price strategy, as the iPhone 5S and Galaxy S5 were its main competitors in the market for price.
Jeff Bezos told Re/code that Amazon's job is "to build the greatest device we know how to build", maybe they should try again?