Amazon Echo Needs to Be Seen and Heard
Echo as a fashion consultant
The pace at which Amazon (AMZN) has been updating Echo’s skills and pushing out new Echo devices leaves no doubt that the company views the product as an important aspect of its business today and in the future.
Echo exists in five variants. There is the original Amazon Echo, and the Echo Tap, Echo Dot, Echo Look, and Echo Show. These Echo devices come in different designs, and Amazon pitches them as useful in different scenarios. For example, Amazon portrays Echo Look as a fashion consultant—it can help someone buying clothes online decide which garment is best for them.
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Competitors training their weapons on Amazon
While Amazon’s growing list of Echo devices has given customers a broad selection, Amazon is contributing toward overcrowding of the smart speaker market. Alphabet’s (GOOGL) Google, Apple (AAPL), and Microsoft (MSFT), alongside smaller players, are vying for a share of the market for voice-controlled speakers. Amazon, with its vast market share, is the target of new players entering the market.
Echo needs more exposure to tackle competition
As the smart speaker market gets crowded, Amazon needs to make Echo stand out. Equipping it with more skills isn’t enough. Apple could rattle Amazon in the smart speaker market given that it has a network of stores where it can show off its HomePod device. By putting Echo in a place where more people can see it and interact with it, Amazon could drive more buyer interest in the device. Amazon could use Whole Foods (WFM) locations to display and demonstrate Echo.