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Amazon Is Losing Market Share in the Smart Speaker Market

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Amazon is losing market share to Google and others

While Amazon (AMZN) is a pioneer in the smart speaker market, it seems to be losing market share in the space. A recent report by Strategy Analytics suggests that Amazon sold 4 million smart speakers in the first quarter and had a 43.6% market share, compared with an 81.8% market share in Q1 2017. Meanwhile, Alphabet’s (GOOGL) Google Home speakers saw its market share expand YoY (year-over-year) to 26.5% in the first quarter.

However, according to Canalys, Google overtook Amazon to claim the first spot in the global smart speaker market in the first quarter. Google sold 3.2 million smart speakers, while Amazon sold only 2.5 million.

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Amazon may not be as strong as we thought

While the two reports differ, they both suggest that Amazon is losing market share to Google and newer market entrants such as Alibaba (BABA). They also suggest that Google is at least making good ground in the segment.

Another takeaway from the reports is that the smart speaker market is growing quickly. According to estimates from the Strategy Analytics report, global smart speaker shipments grew 278% YoY in Q1 2017, while the Canalys report suggests they grew 210%.

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