Just over a week ago, a report came out which stated Amazon's first flagship smartphone wasn't exactly flying off the shelves. Unlike their Kindle Fire tablets, the Fire Phone was said to have sold less than 35,000 units during its first month on the market while competitors like Apple and Samsung are selling tens of millions of their smartphones each month.

RELATED: The Best Rugged Cases For Amazon’s Kindle Fire HDX Tablets

This report may have been the last nails in the coffin for Amazon's smartphone efforts as the Fire phone's on-contract price has experienced a heavy discount going from $200 to a mere $0.99.

While this promotion will surely push more units than it did in the beginning, it shows how desperate the company is to sell their existing stock which is never a good sign. It would scare me as a potential buyer as there is no clear idea of how long the company will continue support the device in the future given the poor performance at such an early stage.

SEE ALSO: How To Get A Free Or Discounted Amazon Prime Account

Though the dramatic price drop may seem too early to some, it does make logical sense as Apple is on the verge of announcing their next flagship iPhone at tomorrow's press event and Samsung released their Galaxy Note 4 phablet last week so competition will be especially fierce these next few weeks. If you happen to be in the market for a Fire Phone then now would be the time to buy as you literally couldn't pick up the device for any cheaper.

Source: Amazon