Amazon extends its product reach
Amazon (AMZN) has launched its Echo devices in Mexico, extending the reach of its smart speaker products. The launch sees Amazon join Apple and Alphabet’s (GOOGL) Google, which have already introduced their smart speaker products in Mexico.
Apple launched its HomePod smart speaker in Mexico last month. The introduction of Echo devices in Mexico comes at a time when Amazon is under increasing pressure to defend its share of the global smart speaker market.
Slipping market share
According to Strategy Analytics, Amazon’s share of the global smart speaker market slipped to 41% in the second quarter from 75.8% a year earlier. However, Google gained ground as its share of the global smart speaker market jumped to 27.6% in the second quarter from 16.1% a year earlier. Alibaba (BABA), Apple, and JD.com (JD) held 7.0%, 5.9%, and 2.2% of the global smart speaker market in the second quarter, respectively.
Market getting crowded
The smart speaker market is getting crowded, with Yandex (YNDX) and Facebook (FB) also vying for revenue in the space. Yandex’s Station smart speaker went on sale in Russia in July, and last month, Facebook launched its Portal smart speaker devices with display screens for video chats and streaming.
Despite escalating competition, the smart speaker market presents an enormous commercial opportunity for Amazon and other vendors. According to MarketsandMarkets, the global smart speaker market is expanding at an annual rate of 34.4% and will grow to $11.8 billion by 2023 from an estimated $2.7 billion this year.