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End of Alexa? Amazon to lose $10 billion on its devices

Amazon and a difficult decision in the face of popular but not profitable devices. | Font: Hide

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Amazon devices tend to be a very good value proposition due to their affordable prices.

The client takes the smart device, and Amazon increasingly present in his life, turning Alexayour digital assistant, part of popular culture.

But Amazon earn what you need with affordable devices like yours smart speakers threw out? Probably no.

insiders analyzed Amazon’s internal data and found that the Worldwide Digital business unit, which includes devices threw out, Alexa and streaming service Prime Videolost $3 billion in the first quarter of this 2022.

Most of these losses were Alexa and other devices Amazonindicated the source insiders.

insiders It is estimated that the division could lose $10 billion this year.

Why Alexa is not a goldmine

Amazon’s intention was for customers to use Alexa for your purchases, but it’s not that popular.

Instead, customers engage in interactions that don’t make money for the company, such as asking for the time or asking about the weather.

This was exactly the team after Alexa one of the first victims of staff cuts Amazon.

Source: RPP

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