You aren't a soccer mom who loves Amazon and buys everything on there because it still saves them time (even if its 4 day free shipping). Amazon Mom says there's a huge market for this sort of stuff. These Mom's have phones.

Imagine the point in time where anyone with a fire phone firefly's EVERYTHING they buy, before they buy it. Cheaper from Amazon, and free "2" day shipping? Killer feature. Never pay more again.

Fairly powerful for price conscious customers. Add in Spotify at $10 a month, Netflix at $10 a month ($240 a year, over $500 over the life of a 2 year contract), and you are getting the entire phone for FREE if you already have Prime.

At total value, if you wanted to have a "similar" phone with similar streaming services and content providing, you'd be paying more than if you bought this $200 phone, with a data plan you most likely will already have.

Looking at it that way, Amazon is paying you to use their phone. Understanding how the Prime model works, this makes a shit load of sense.