The Amazon.com, Inc. logo is seen on the side of a delivery truck in Brooklyn
The Amazon.com, Inc. logo is seen on the side of a delivery truck in Brooklyn, New York October 23, 2014. Amazon.com Inc is expected to report a third-quarter loss of 74 cents per share and provide an outlook for the upcoming holiday shopping quarter. Reuters/Brendan McDermid

Recently, Amazon claimed that the reason behind dismal sales of the Fire Phone was that the handset was not priced correctly. In a bid to find more buyers for the Fire Phone handset, Amazon has slashed the price of the unlocked version of 32 GB Fire Phone to $199.

PhoneArena claims that the new Amazon Fire Phone offer is nothing but an attempt from the retailer giant to get rid of its unsold inventory. One good thing about the Fire Phone deal is that Amazon is also giving $99 worth of Amazon Prime subscription for free along with the purchase of the handset.

The Amazon Prime service will allow users to make the most of free shipping service and avail free content like unlimited streaming music, movies and more. It even allows users to borrow a Kindle book each month for free.

The Amazon Fire Phone was first revealed in June. During its launch, the unlocked edition of Fire Phone was priced at $649 and the two year on-contract price of the handset with AT&T was $199. After a few months, Amazon lowered the price of the handset by reducing the off-contract price to $449, whereas the on-contract price was brought down to 99 cents.

The Fire Phone runs on Amazon Fire OS v3.5, which is a modified version of Android OS. It is devoid of all Google services. Instead of the Google Play Store, users can access the Amazon App Store to download apps for the handset.

The Firefly service is available exclusively on Amazon Fire Phone. It makes use of the rear camera of the handset to recognise millions of items from multimedia to household items to find the lowest deals on Amazon.com or get more information about them.

The Amazon Fire Phone features a 4.7-inch IPS LCD display that supports HD resolution with 312 ppi. It is available in two storage variants of 16 GB and 32 GB. It is powered with Snapdragon 800 chipset and 2 GB RAM. The other features of the handset include 13 MP OIS camera, LTE connectivity and 2400 mAh capacity battery.