Amazon Just Dropped The Price Of Its Smartphone To 99 Cents

Amazon just dropped the price of its first smartphone, the Fire phone, from $199 to $0.99 with a two-year contract with AT&T.

Even with the slashed price, the phone still comes with a year of Amazon Prime, which includes free shipping on millions of items as well as a growing selection of free movies, books, and music.

Amazon launched the phone on July 25, and it was widely seen as a bit of a flop, with slow usage growth, according to market research (Amazon itself hasn't released any sales numbers yet).

The phone has two main unique features: Dynamic Perspective, which allows it to react to how it is held, and Firefly, which can scan more than 100 million objects and make it easy to buy them on Amazon.com.

Amazon also just announced Fire phone will be on sale in the UK and in Germany starting September 30.

Here's the statement from the company:

Dynamic Perspective, Firefly, world-class customer support with Mayday, free unlimited cloud storage for photos, 32GB of storage-and, for a limited time, customers get 12 months of Prime membership with Fire phone, which includes unlimited streaming of tens of thousands of movies and TV episodes from Prime Instant Video, access to over a million songs to download or stream from Prime Music, over 500,000 books to borrow from Kindle Owners' Lending Library and free two-day shipping on tens of millions of items. Now there's another great reason to buy Fire-it's just 99 cents with a two-year contract. Customers can purchase Fire on www.amazon.com, www.att.com and in AT&T stores nationwide.

"Fire is now 99 cents with a two-year contract, plus customers get one full year of Prime included," said Ian Freed, Vice President, Amazon Devices. "With access to all of the Prime content, Mayday, 32GB of memory and free unlimited cloud storage for photos, plus the exclusive Dynamic Perspective and Firefly features, Fire is another example of the value Amazon delivers to customers."

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.