Amazon and Google aren’t generating much profit from smart speakers

Shoppers looking to get into the smart speaker game were definitely happy during the holiday season when both Google and Amazon slashed the prices of their AI driven speakers. The Amazon Echo Dot and Google Home Mini decreased to $29 from their original price points of $50. At almost a 50% discount, it’s hard to imagine both companies profiting much from their entry-level smart speakers, but looking big picture, it was probably all about getting as many people as possible to join the ecosystem of their own.

Amazon is definitely a front-runner with this strategy and Google is trying to catch up. Apple, on the other hand, was not able to keep its promise to start selling its HomePod in 2017 and announced that they will make it available during the first half of 2018. This is a dilemma indeed for Apple, and Samsung has one as well, who is still considering the launch of a Bixby smart speaker. Considering how saturated the market has become in so little time, being late to the game will surely be costly in terms of market share.

Being entry-level devices, the Google Home Mini and Amazon Echo Dot do not have the best quality in terms of sound and other features, but having a low entry point of less than $30 makes them affordable enough for buyers to consider one as a low-cost investment to try out the benefits of newborn AI personal assistants. The two companies have been aggressive¬†with one other, and we just hope it doesn’t backfire and leave consumers in the dark.

Did you get a smart speaker over the holidays? Let us know in the comment section below!

SOURCE [Reuters]

About Amiel Pineda 34 Articles
Amiel began his tech journey in the late 90's reading stuff from PCWorld when he was in high school. His 733Mhz-Pentium III PC + 32MB (yes, MEGABYTES) GeForce2 MX video card ran Diablo 2 like a hot knife through butter. He's a big fan of music but seems to stay stuck in that same decade. Been using Android since 2010 and never looked back. Never switching, ever!