How Amazon Plans to Make More Money from Echo
Amazon is already controlling the voice-enabled smart speaker market
Voice-controlled smart speakers are becoming increasingly popular, and Amazon.com (AMZN) is already dominating the market. According to research firm e-marketer, Amazon’s Echo has a 70.6% market share in the segment, while Alphabet’s (GOOGL) Google has a 23.8% share with its Google Home.
The use of voice-enabled smart speakers is highest among younger demographics. According to e-marketer, 26.3% of voice-enabled smartphone users are between the ages of 25 and 34.
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The research firm estimates that over 35 million Americans will use voice-activated speakers, which would represent a 129% rise over last year. Voice controls are now not only in smart speakers but also present in other platforms, including wearables, PCs (personal computers), tablets, and TVs.
According to research by Juniper, smart speakers will be present in as many as 55% of American households by 2022.
How Amazon plans to make more money from Echo
While Echo represents a minute portion of Amazon’s revenue, the company has pressed hard to give Echo a global presence. Amazon recently announced plans to introduce Echo to Asian markets like India and Japan. Eventually, Echo owners could hear ads from Alexa, as Amazon tries to add more sources of revenue.
But voice-enabled smart speakers are in a nascent phase of development, and so the makers of such devices may try out a wide range of such devices—until consumers know what they really want.