Ben Thompson has an excellent article regarding the Amazon Fire phone:

What we expected from Amazon was along the lines of Jeff Bezos’s promise for the Fire tablet line: “Premium products at non-premium prices.”

Instead the Fire Phone is right up there with an iPhone 5S when it comes to price, and it’s sold with the exact same contract you would get with that iPhone. There is no margin compression, no subsidized data. There’s nothing different at all. Unlike the Fire tablets, which most assume are sold at near cost in order to drive usage of Amazon’s services — especially Prime video and Kindle books — the Fire phone seems unlikely to attract any new customers to the Amazon ecosystem. And perhaps, that is what makes it so different: the Fire Phone seems to be not only a different strategy for Amazon, but a new kind of smartphone strategy full-stop.

Amazon’s Whale Strategy