Hi Alexa, Amazon's Echo device team isn't convinced a new subscription service and refreshed personal assistant will save the company from the bill...

[Windows Central]

Amazon lost over $25 billion in its device business between 2017 and 2021. The losses cut across its Echo devices and other products, including Kindles, Fire TV Sticks, and video doorbells.

Hi Alexa, Amazon's Echo device team isn't convinced a new subscription service and refreshed personal assistant will save the company from the bill... : Read more

 

[fjtorres5591]

Bezos is right and Jassy is wrong.
Amazon's profits outside AWS (Jassy's old domain) come from the integration of the supporting products and services. Without the products, the services have little to no value.

Just one example: Amazon music is no different than spotify, Apple music, or whatever. It only attracts paid users because it can run and be controlled by Echo Dot and the Fire toys. It's the Synergy they are buying. Take those away, the synergy goes away, and you might as well use pandora.

If Jassy insists on making each product/service individually profitable it'll be the end of that synergy and the end of Amazon.

Looks like Amazon's new Boss is another Ballmer. Penny-wise and pound foolish.

 

[Cmndr_Bytes]

I'm not sure I understand this;
"It will allow consumers to control their smart homes using their voices, rather than the conventional way that requires them to launch the app on their smartphones."
I use my voice to control my smart home devices now. I don't have to open an app.

I was looking forward to the more "conversational Alexa". Not sure I am willing to pay extra for that. I understand they need to make a profit though.

 

[fjtorres5591]

I'm not sure I understand this;
"It will allow consumers to control their smart homes using their voices, rather than the conventional way that requires them to launch the app on their smartphones."
I use my voice to control my smart home devices now. I don't have to open an app.

I was looking forward to the more "conversational Alexa". Not sure I am willing to pay extra for that. I understand they need to make a profit though.

But they are making a profit. Just not on the hardware alone.
It's a form of the razor/blade model. Or classic gaming consoles.
Sell the enabling hardware at or near cost, rake in the profits via lock-in. How hard is that to understand?

(I could understand the gripes if he were in the FTC but an american corporate CEO? What is he? German?)

All you need to do is go back years and years and look at reviews for the FIRE line. What always shows up in the "cons": "good hardware at a greatbprice but you're locked in to the Amazon universe." Well, duh! That's the whole point! Lockin. What next? He's going to kill Prime perks?

The question isn't whether their gadgets make a profit but whether the services and content make enough profit to offset (most) of the hardware losses.

It's another form of basket pricing, retail 101.

If he doesn't understand it, he shouldn't be running a hydra headed consortium and stick to the IT world of 30% margins. Cause in retail and content single digits is usually the best you can do. 10-12% if you're lucky.

 

[SvenJ]

I'm not sure I understand this;
"It will allow consumers to control their smart homes using their voices, rather than the conventional way that requires them to launch the app on their smartphones."
I use my voice to control my smart home devices now. I don't have to open an app.

Had that sentence copied to comment on myself. I use voice to control stuff almost exclusively. Only open the app to make changes to things. Hope they aren't thinking about reducing features so they can reintroduce them as new in a paid tier.

 

[fjtorres5591]

Had that sentence copied to comment on myself. I use voice to control stuff almost exclusively. Only open the app to make changes to things. Hope they aren't thinking about reducing features so they can reintroduce them as new in a paid tier.

That would be even more stupid than stupid, considering Alexa in no longer unique. All you need to do is look at the OTA DVRs like Tablo to see how the products that require a sub just to work go nowhere.

If they absolutely need to improve the profits of the Alexa ecosystem either introduce new services worth paying or release less Echo models.

With the DOT, a speaker, and a model with a screen they can cover the market fine.
Microwaves and clocks? Why?