There was quite a bit of excitement around the Amazon Fire Phone, see my full review, prior to the announcement last summer. However, that excitement quickly waned during the presentation in Seattle when Amazon failed to differentiate in terms of pricing or unique data plan offerings while releasing a phone on just one carrier.
Expectations were that Amazon would offer an inexpensive phone targeted towards the Amazon Prime shopping experience. The Fire phone was optimized for shopping with its Firefly service, but it turns out that is a better fit for the tablet space.
Since last year's flop, Amazon has been cutting the price of the Fire phone so that just a couple of weeks ago it was down to $130 for a 32GB unlocked model that included a year of free Amazon Prime service, a $99 value. GeekWire received confirmation that Amazon has sold out of its inventory of Fire phones so we shouldn't see any more price promotions.
At the time of the announcement, Amazon CEO Jeff Bezos indicated this model was just the first in a line of future mobile phones. Given that Amazon has fired many of the employees from the group working on the Fire phone, it's not likely we will see Amazon attempt to build another smartphone.