The 32-gig phone will cost less than a dollar with a two-year contract.
Amazon slashed the price of its Fire smartphone Monday, a day before Apple is expected to unveil its latest version of the iPhone.
The online retailer said the Fire with 32 gigabytes of memory will now cost 99 cents when customers sign a two-year contract with AT&T. That's down from $199.
The phone with 64 gigabytes of memory will now cost $99 with a two-year contract, down from $299.
Amazon said the phones will still come with unlimited cloud storage for photos and a free 12 months ofAmazon Prime, the company's free shipping and video-streaming plan, which normally costs $99 a year.
The Seattle-based company began selling the phone in June through a preorder. Besides a possible new iPhone, the Fire is expected to face increasing competition this fall. Samsung unveiled two new phones last week that are set to go on sale in October.
Shares of Amazon.com Inc. fell $4.04, or 1.2 percent, to close at $342.34 Monday.
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