"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 in a press release to ZDNet. "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."
Amazon's gameplan here is pretty clear. It's a "get people into the ecosystem as fast as possible—and at any cost" move. With the iPhone 6 so close, I sense that Amazon is taking some drastic steps to keep the Fire Phone in the game in the face of what is likely to be very stiff competition.