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Amazon Scaling Back Development Of Consumer Products?

WSJ report cites Fire phone flop, growing focus on profitability 8/27/2015 05:00:00 PM Eastern

Amazon has scaled back or halted development of some consumer products as part of a more cautious spending approach taken to heed investors’ calls for improved profitability, the Wall Street Journal reported.

The company had directed almost all of its revenues into operations and product development, but the company cited tighter cost controls in delivering a surprise $92 million profit in the second quarter.

In recent weeks, dozens of engineers who worked on its Fire phone were laid off, signaling scaled-back plans for a replacement. The Fire phone flopped in the market.

Last year, Amazon released 10 consumer devices, including a wand for scanning bar codes at home, the streaming Fire TV stick, the $180 Echo voice-activated speaker and virtual assistant, and the Fire phone.

The company continues to work on an Internet-connected kitchen computer that can take voice commands to execute such tasks as ordering merchandise from Amazon, the Journal reported.

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