(Pocket-lint) - Amazon has dramatically slashed the price of its first smartphone to just £99 for the 32GB version, £149 for the 64GB model. That's a drop of up to £330 pounds on the original launch prices (for the 64GB phone).

There is a catch or two though; the deal is only available to Amazon customers in the UK and just for one day, today 28 January. Additionally, the Fire Phone is locked to O2, so while you can buy it without a contract, you can still only use it with an O2 SIM.

The deal would have been even more spectacular had Amazon still offered a year's worth of Prime membership with each phone sold, but that's just one month free these days. It was always unlikely that the original Prime would have still been in place, effectively pricing the phone at just £20.

READ: Amazon Fire Phone review

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The sale price is also an indication that Amazon is clearing stock of the phone now, perhaps in preparation of an expected successor. This Fire Phone has not been the hit the retailer had hoped for and was not critically well-received. Its specifications are decent enough, with a 4.7-inch 720p screen, 13-megapixel rear camera, 4G support and quad-core 2.2GHz Qualcomm Snapdragon 800 processor, but the user experience has been questioned.

Nonetheless, if you're looking for a cheap smartphone and are on O2 (or happy to use an O2 PAYG SIM) then £99 is an attractive offer.

Writing by Rik Henderson.