Amazon’s long-rumored Fire Phone finally materialized earlier this year with its unique 3D “dynamic perspective” feature in tow. Its hardware specs weren’t anything to write home about and the 3D gimmick wasn’t enough to get customers excited, especially at $199 on contract ($649 straight up).

As sales figures no doubt indicated, Amazon priced the device way too high at launch. In September, the e-commerce giant slashed the price of its Fire Phone to $0.99 on contract, or $449 without a commitment.

Even with the price cut, Amazon lost big on the Fire Phone with a $170 million write-off in the third quarter and plenty of inventory left to move. Amazon learned the hard way that building a smartphone that people actually want to buy is no easy feat.

In an effort to offload additional inventory, Amazon has now cut the price of the Fire Phone down to just $199 without a contract. Bundle in the free year of Amazon Prime and suddenly, the Fire Phone is a much more attractive offer that could serve as an excellent back-up handset or a budget phone for a family member.

Do note that the Fire Phone is only compatible with AT&T and T-Mobile networks in the US.

Interestingly enough, Amazon isn’t giving up on its smartphone ambitions. During an earnings call last month, Amazon SVP of Devices, David Limp, said the company intends to produce a Fire Phone sequel.