It's $199 with a 2 year contract with AT&T, meaning it's a $649 phone (now confirmed). It's priced with other 'premium' phones like the iPhone 5S and the Galaxy S5 (both $199 with a 2 year contract, $649 off contract at AT&T). Unfortunately, Amazon's other products like the Kindle Fire are anything but premium hardware and software-wise. On the software side this is partially due to the Amazon-first mentality for all media and partially due to the extremely clunky Amazon UI and app store. Then again, I wouldn't consider Samsung a 'premium' phone software-wise either due to my poor experience with the Galaxy S4's clunky setup after coming form 'pure' Android. It's still far better than the Kindle Fire, though.