Fire phone was a flop from the start. Substandard hardware and premium price tag do not mesh well together. Amazon thought that they could make software killer feature and sell phone trough massive advertising and sheer brand power. That is a tall order, and I am not surprised they failed.
However, if I learned anything about Amazon it is their tenacity. They will keep improving and pouring billions into Fire until it works, like they've done with their Cloud business. I think pulling HP Touchpad is not an option because they are too much invested in mobile strategy. So with all that said, while I am not surprised that first Fire phone flopped, I eventually expect Amazon to have at least limited success.
However, if I learned anything about Amazon it is their tenacity. They will keep improving and pouring billions into Fire until it works, like they've done with their Cloud business. I think pulling HP Touchpad is not an option because they are too much invested in mobile strategy. So with all that said, while I am not surprised that first Fire phone flopped, I eventually expect Amazon to have at least limited success.