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The Smart Speaker Market: How It’s Shaping Up in China

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Chinese technology giants have unveiled new smart speakers

Chinese technology giants Alibaba (BABA), Baidu (BIDU), and JD.com (JD) all unveiled their smart speakers at an annual consumer technology event earlier this month.

China (MCHI) is the second-largest market for smart speakers after the United States. According to a recent report by Canalys Research, global smart speaker sales will be 56.3 million this year. According to the report, 38.4 million of those will be sold in the United States, and 4.4 million will be sold in China. However, China could surpass the United States by 2021, according to the report.

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How smart speakers are useful for e-commerce companies

JD.com was the first company to introduce smart speakers in China. Baidu, which unveiled three new speakers at the consumer technology event, could be a big player in the Chinese smart speaker market, given its expertise in AI (artificial intelligence) and search.

Smart speakers are quickly becoming the foundation of a smart home. Smart speaker owners use the device to dim lights, order food, hail a ride, and other things. For e-commerce companies such as Amazon (AMZN), Alibaba, and JD.com, smart speakers serve another purpose. They help the companies gather crucial customer data, including user preferences.

While Amazon has a negligible presence in China, it is by far the biggest supplier of smart speakers in the United States.

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