Tech

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

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Amazon's Bezos demos Fire's 3D technology

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

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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.

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Amazon fuels Fire phone

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."

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