Amazon’s attempt to break into the smartphone market didn’t really work that well for the company, but the retail giant refused to give up its hardware ambitions, finding a gap in the untapped smart home device segment instead, and exploiting it using Amazon Alexa-powered Amazon Echo devices.

One big reason for their success is is that Amazon kept thinking ‘hardware’ when all their competitors – Apple with Siri, Microsoft and its Cortana and Google’s Google Assistant – kept their focus on the software side of things. Not having a huge operating system user base was a huge weakness that Amazon had with respect to their competitors. Apple’s iOS has more than a billion active devices around the world, Google’s Android is the ultra-dominant player in the mobile market and Microsoft still has loyal Windows followers around the world.

As all these companies started working on their AI-powered personal assistants, Amazon was at a huge disadvantage. There was no direct way to connect to their customers. So, they decided not to take the iOS app or Android App route but, instead, decided to build a standalone smart home speaker and put Amazon Alexa behind it.

It’s quite possible that even Amazon didn’t realise how much pent-up demand was there for such a product. With smartphones occupying a huge part of lives, as well as being in control of our communication with the world, the odds of having another connected device in our homes didn’t look that promising.

If the industry had realised there was sufficient room for a product there, they would have jumped in, with Apple and Google already launching their seventh or eighth version of that smart home device. But Apple still doesn’t have anything like it, and Google Home only started out a few months ago.

According to Consumer Intelligence Research Partners, there are 8.2 million Amazon Echo device users, thanks to the roaring sales of the Amazon Echo family during the holiday season. Amazon said that sales during last year’s holiday season jumped nine fold.

“Sales of Amazon Echo family of devices up more than 9x over last year’s holiday season. Echo Dot is the best-selling, most gifted item on Amazon.com with millions sold worldwide since launch” – Amazon Press Release December 27, 2016

Amazon Echo with Amazon Alexa

Business Insider’s estimates above, taken from CIRP and other sources including Amazon.com could actually be extremely conservative.

And now, Amazon Alexa is pushing on multiple pressure points: OEM device integration into smartphones, refrigerators, etc.; making Alexa Skills Kit use practically free for developers; promoting voice shopping in a big way; and several other initiatives that will eventually take Amazon Alexa to greater heights than Apple, Google or Microsoft have ever gone with their own smart voice assistants.

And it all started with the Amazon Echo.

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4 COMMENTS

  1. Before Xmas I knew of only one Echo user.

    Since then I have bought four, and my family have bought more.

    Around half the clients to my private medical practice have bought a unit having played with the unit in my office.

    Before Xmas my clients & visitors would ask what the black ashtray was about – now they know exactly what it is.

    Amazon must have sold untold MILLIONS since Christmas.

  2. Had the Echo since it launched and now have several Google Homes (GH). The GH you just talk to it like to a human. The Echo has commands you memorize.

    So on the Echo it has a command if you do not know the name of a song that is “song goes like …”. GH you just say whatever you have like you would to a human.

    The GH is the most human feeling technology I have used. It is also picking up very slight nuances.

    Trigger the GH but forget what I was going to ask and I say “I forgot” and she indicates “yes happens to me all the time”. But then another time trigger and forget but say “nevermind” and she saids “yes let’s move forward”.

    The GH is also learning clearly. So to replay a song was limited what it understood when received. But now you can say restart, again, from the top, one more time and pretty much any other way you can think.

    The GH is like the next generation Echo. So for example I ask it “is billy related to george” and it gets it is Billy Bush related to George Bush and gets me the results. I was blown away as I gave it so little.

    The true sign is the GH is embedded into my life now and when we went on holiday recently I missed it. Always like our Echo but never really missed it while on holiday.

    • Adam, thanks so much for dropping by, and welcome to 1redDrop.com!

      Folks, Adam Marchick is the co-founder and CEO of VoiceLabs, one of the most cutting-edge cloud companies in the world dedicated to developing voice-powered analytics solutions for Amazon Alexa-powered devices like the Amazon Echo. Please review their 2017 Voice Report (linked in Adam’s comment) to see what’s going on in intelligent voice-interactive systems such as smart speakers.

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