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Google & Amazon likely lost money on smart speakers in holiday sales, say analysts
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Google & Amazon likely lost money on smart speakers in holiday sales, say analysts

According to analysts, Google and Amazon are so carried away

Google & Amazon likely lost money on smart speakers in holiday sales, say analysts

Google & Amazon likely lost money on smart speakers in holiday sales, say analysts

According to analysts, Google and Amazon are so carried away by their smart speakers in holiday sales that they probably lost money on each unit. Amazon abandoned its Echo Dot to $ 29.99 on the eve of the holidays, and the Google Home Mini also at the same price for different sales.

The desire of the two companies to lose money on equipment reveals its completely different strategy for Apple with its forthcoming HomePod speaker

Reuters reports that, although Apple wants to make money on both hardware and additional signatures of Apple Music, Google and Amazon are willing to pay for the data collected from their speakers.

According to analysts, both companies suffered small losses or broke even when selling devices in the form of a hockey puck. According to the analysis of ABI Research, Echo Dot has about $ 31 value. Components in Google Home Mini cost about 26 dollars. The figures do not include overhead, shipping and other costs, which means a discount on versions that can be sold at a loss.

Analysts say that Apple is trying to profit from the device itself and support Apple Music subscription sales for $ 9.99 per month. Apple’s voice assistant Siri will probably focus on recommending new songs.

Meanwhile, Amazon and Google are striving to give consumers the taste of their digital assistants, Alexa and Google Assistant, at impulse purchase prices, hoping to block customers and profit from later sales of goods and data on buying habits.

Views are divided into the likely impact of discounted speakers when HomePod goes on sale. My colleague Zak wrote yesterday at 9to5Mac about the possible impact of increased competition in the market, especially when you can combine Amazon Dot with Sonos Play: 3 to get something that matches the skills and sound quality of HomePod.

Analysts cited by Reuters agree.

“These kinds of prices are different for consumers and bad for Apple,” said Paul Erikson, senior analyst at IHS Markit […]

“Apple has problems,” said Adam Wright, a senior analyst at IDC, who suggested that about 35 million smart-speakers around the world were installed about two hundred weeks ago, apart from selling in the US to the US. “We witnessed the explosion in the last six months.”

The alternative view put forward in this part is that anyone who bought only one of the discounted Amazon or Google devices did not invest in it.

Some consumers may think that a speaker of $ 30 will be cheap enough to throw away, rather than prevent, buying an Apple device when it arrives.

Amazon currently dominates the global smartphone market, and Google is the second largest player.

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