The smartphone market was not kind to the likes of Amazon's first offering, the Fire Phone. The device sold very poorly and the company lost $83 million due to leftover unsold inventory which lay stagnant in their warehouse. Early signs of its failure broke out when the device had a price drop from $200 on-contract to a mere 99 cents just over a month after its release.

Fortune sat down with Amazon's Senior Vice President of Devices, David Limp, who give some insight on the Fire Phone failure and the future of smartphone development for the company. Limp's impression of why the Fire Phone failed focused on a critical pricing mistake:

“We didn’t get the price right. I think people come to expect a great value, and we sort of mismatched expectations. We thought we had it right. But we’re also willing to say, ‘we missed.’ And so we corrected.”

It appears Amazon has plans to continue to support the Fire Phone and even develop a next generation model despite the poor performance in their first efforts. This sounds like a bad to most, but it is important to remember the original Kindle e-reader was not well-liked by critics at its first inception. However, the device has since expanded and evolved selling millions of dollars worth of units each year.

Limp then went on to state:

“We are going to keep iterating software features to get it better and better,” said Limp. “Each release that we’re doing, we’re learning. Beyond that, I leave it out there to see what people think.”

Amazon also released an all new streaming stick as of last week with the hopes to steal away market-share from Google and Roku competitors.

Source: Fortune