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Amazon introduces 3-D Fire Phone for $199 or $299

As expected, Amazon introduced its smartphone, called the Fire Phone, at an event in Seattle.

(Check out our live blog below)

The phone has a 4.7-inch screen, aluminum buttons and a high-definition LCD display, among other features.

As previously reported, the phone has some 3-D functionality, which Amazon CEO Jeff Bezos called "dynamic perspective." This allows, among other things, the user to scroll through applications (like a set of phone numbers) just by tilting the phone, rather than touching the screen.

Bezos said this is accomplished by a series of front-facing cameras that track the user's perspective, in order to render the phone's interface in 3-D.

The phones are priced at $199 for 32 GB, or $299 for 64 GB, with a two-year contract with AT&T, or $650 without a contract. It's available for pre-order Wednesday, but starts shipping July 25.

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The company's stock was up about 3 percent after the announcement.

The Fire will also feature unlimited photo storage, plus access to Amazon's streaming music service for Prime members, Bezos said.

Bezos also introduced a service called "Firefly," wherein the phone can instantly identify products using the phone's camera, and add them to your Amazon account.

Before the announcement, some argued that taking on Samsung and Apple in the smartphone market could turn out to be a big mistake.

"They are entering a very established market and they are trying to be a new player, and even with a name like Amazon, it's not going to happen," said Kevin Paul Scott, co-founder of the ADDO Institute, a branding consultancy firm.

"It's really a branding issue. People do not associate Amazon with phones, so regardless of how good their phone is, it won't catch on."

Read MoreWhy an Amazon smartphone could be a big bust

By CNBC's Cadie Thompson. Matt Hunter contributed to this report.

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