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SALT LAKE CITY — With new smartphones costing hundreds of dollars, what would you be willing to give up to get a phone with similar features for a fraction of the cost?
Amazon is betting smartphone users will put up with ads on their lock screen in exchange for better deals, announcing Wednesday that it will subsidize the cost of two unlocked Android phones for Prime members who opt in to the deal.
“Customers love the freedom of unlocked phones — it’s the fastest growing category within cellphones on Amazon.com — so we set out to find a way to make them even more affordable for our Prime members,” said Laura Orvidas, Amazon.com’s vice president of consumer electronics, in a news release.
“We currently offer low prices supported by lockscreen offers and ads on our Fire tablets and Kindle e-readers, and they’ve been a hit — in fact, the vast majority of customers choose the lower-priced option,” she continued. “Now we’re lowering prices in a similar way on new, unlocked smartphones, working with two of our best-selling brands, BLU and Motorola."
The two phones available for the deal are the BLU R1 HD, which is being offered for $50 instead of its retail value of $100, and the fourth-generation Moto G, which costs $150 instead of its normal $200. Amazon said the “breakthrough pricing is supported by personalized offers and ads,” and people who buy the phones will not be tied to a contract.
Important note about the new @amazon Prime @motorola G phone: free @googlephotos high res https://t.co/ftQrhd4KIVpic.twitter.com/W4dvlmlucV
— Joe Sterne (@MrJoeSterne) June 29, 2016
The phones became available for pre-order Wednesday, with their official release scheduled for July 12. Pete Pachal of Mashable had the chance to review the devices and said they worked well for normal tasks like navigation and browsing the web, but noted the Amazon app can’t be deleted from the phone.
“From the Gorilla Glass front of the Blu R1 to the soft, curved backside of the Moto G, they both felt like premium designs, not discount-bin trash,” he wrote. “But after handling the phones for a few minutes, yet another catch became clear to me: When you set up your Prime phone, you'll be prompted to sign in with your Amazon account in addition to your Google account.”
Since only Amazon Prime members can purchase the ad-supported phones, it’s possible most won’t mind the company's extra ties to their device. Would you be interested in using a phone subsidized by ads if it cost less up front? Let us know in our poll and comment section.
Contact the author at ncrofts@ksl.com or find her on Twitter.
