At its third quarter earning call, Amazon revealed that the Fire Phone was going to cost it $170 million in write-down charges. Now, in an interview with Fortune, Amazon’s Senior Vice President of Devices David Limp has accepted that the company messed up the phone’s pricing, which has played a key role in its failure. 

Amazon is known for releasing products that undercuts the competition in terms of hardware and price. However, it launched the Fire Phone for $199 exclusively on AT&T, a price at which the iPhone 6 and other Android devices sell for. In September, the company reduced the price of the Fire Phone from $199 to $0.99, which resulted in sales picking up.

We didn’t get the price right,” Limp admitted. “I think people come to expect a great value, and we sort of mismatched expectations. We thought we had it right. But we’re also willing to say, ‘we missed.’ And so we corrected.”

Limp also noted that the couple of software updates for the phone have fixed all the issues that users complained about.

The failure of the Fire Phone, however, has not deterred the company from working on it. He said that not all the risks you take are going to pay off and that some of Amazon’s products like the Kindle and Fire tablet line have been “very successful” even though they were panned by critics initially.

Amazon is going to take a long term approach with the Fire Phone, even though the smartphone market is getting fiercely competitive. Limp says that the company is going to “keep iterating software features to get it better and better” from the feedback that they get with every release.