Amazon has gotten people very used to bundling in their ecosystem. I think people would definitely be willing to pay for it, but not willing to pay extra for it.Nobody will pay for it.
Sell hardware at way below manufacturing cost to increase market share?Absolutely not! I’ll smash the box and chuck it in the trash before I pay them a dime.
How do you lose $10B in one year on this? I don’t understand what those expenses could possibly be to add up to such an astronomical figure.
The current product: No. And it's not even close.This leads to the question: Would you pay to use Alexa?
You forgot:What in your god's name was the original business plan for alexa? how was it, or any other voice assistant, ever intended to generate revenue without a subscription?
The only possible plan I can see would be advertising, but advertising isn't really suited to the medium given that, as the article indicates, the only real use for a voice assistant of that sort is to ask for very basic information.
"Alexa, what's the weather supposed to be tomorrow?"
"The weather tomorrow is forcast to be sunny with a 30% chance of raining BK's new smokehouse wopper. or, come on in and enjoy the 11 to 14 mile per hour breeze wafting the irresistable scent of our new Chicken club."
"Ok. but, like, does that mean it's going to be sunny?"
"The Walmart analytics team says that it'll be sunny enough for big savings!"
"Alexa. Delete yourself."
Yeah, but…Sell hardware at way below manufacturing cost to increase market share?
Plan to turn that market share into profit in the future by using those devices to recommend purchases.
Ignore the obvious -- no one wants to make purchases through an assistant.
It's a two part plan:How Amazon Kills Alexa. By charging for it.
I used to have the celebrity voices play the weather because there way no other way to really use those Digital credits they gave away. Because it was funny. But once they took them away I never used Alexa again.
"Remarkable Alexa" sounds like a shitty romcom sitcom melodrama series you'd find on Prime VideoThe current product: No. And it's not even close.
The rumored "remarkable" AI upgrade: It'd need to be a really damn good conversational voice model, and include major privacy and security improvements for paying customers. It's not impossible that they'd get there, but on top of the technical challenges there's a lot of organizational inertia fighting them on this. I wouldn't hold your breath.
Look for stocks of RasPis to disappear again as Home Assistant enthusiasts buy them up to make hardware for the built-in voice assistant.
Limb also told Bloomberg...
Something that would actually work would be reasonable voice recognition and AI inference that ran locally. Then there's no ongoing cost to Amazon except development.The humility to refine the actually useful core of your product rather than chasing the trends of kids cooler than you is obviously for losers who don't know how to be disruptive...
Nobody will pay for it.