LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Technology News

Amazon, Google cut speaker prices in market share contest: Analysts

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Amazon, Google cut speaker prices in market share contest: Analysts
Handout image of Amazon's one of two new voice controlled devices Echo Dot. Image source: Reuters
Updated: Wed, Jan 03, 2018
06:01 pm
Reuters
RELATED NEWS
Former worker sues Amazon for not providing lunch breaks Former worker sues Amazon for not providing lunch breaks
Amazon Fab Phones Fest Sale 2021: Smartphone buyers alert! Check best deals, top offers on latest mobile phones and accessories Amazon Fab Phones Fest Sale 2021: Smartphone buyers alert! Check best deals, top offers on latest mobile phones and accessories
Big development! Amazon ordered to shut facility in this country - Here is why Big development! Amazon ordered to shut facility in this country - Here is why
LPG Cylinder Booking Online: You can save up Rs 100 on gas refill - Here is how LPG Cylinder Booking Online: You can save up Rs 100 on gas refill - Here is how
Revealed! What Amazon boss Jeff Bezos said about his ex-wife's marriage Revealed! What Amazon boss Jeff Bezos said about his ex-wife's marriage

Amazon.com Inc and Alphabet Inc`s Google both discounted their virtual assistant speakers so deeply over the holiday shopping season that they likely lost a few dollars per unit, highlighting a sharply different strategy from Apple Inc as it prepares its HomePod speaker, analysts said.

Both companies cut prices for the smallest version of their speakers, the Amazon Echo Dot and Google Home Mini, to as little as $29 from $50 for the U.S. holidays. Midlevel versions cost a bit more than twice as much.

Apple failed to ship its $349 HomePod speaker in 2017, as it initially planned, and said the device would go on sale in early 2018.

Apple aims to make a profit on the device itself and bolster sales of its $9.99 per month Apple Music subscription, analysts said. Apple`s voice assistant Siri likely will focus on recommending new songs.

Amazon and Google, meanwhile, are eager to give consumers a taste of their respective digital assistants, Alexa and Google Assistant, at impulse-buy prices, hoping to lock in customers and profit from later sales of goods and data about buying habits.

The Home Mini and Echo Dot do not match the sound quality of the HomePod, but consumers may see less need for a superior, pricier speaker from Apple once they have a rival set up. Even the midlevel Amazon and Google devices were discounted to $79 over the holidays.

"That kind of pricing is great for consumers and bad for Apple," said Paul Erickson, a senior analyst with IHS Markit.

Some consumers might consider a $30 speaker to be cheap enough to throw away and not a barrier to buying the Apple device when it arrives.

Amazon declined to comment on Echo devices said but said in a press release it sold millions of its Echo Dot speaker during the holiday season, making it the best-selling product over the period on its online store.

Google did not disclose sales numbers for the Home Mini, but Google Home spokeswoman Nicol Addison said the company was very happy with holiday performance. Google gave away the devices to buyers of its new Pixel 2 smartphones and offered them for $29 at Wal-Mart, Target and Best Buy.

Amazon dominates the emerging market for smart speakers outside of China, with Google closest behind. Sales of the devices are not yet substantial enough to affect the financial results of either company.

Both companies took small losses or broke even on sales of the hockey puck-shaped devices, analysts estimated.

The Echo Dot has about $31 worth of parts, according to analysis by ABI Research. Components in the Google Home Mini cost about $26. The figures do not include overhead, shipping and other expenses, meaning discounted versions likely sold at a loss.

"Apple is in a bit of trouble," said Adam Wright, senior research analyst at IDC, who estimated that about 35 million smart speakers had been installed worldwide as of a couple of weeks ago - not including U.S. Christmas sales. "We’ve witnessed an explosion in the last six months."
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
AmazonAlphabetGoogleVirtual assistant speakersHoliday shopping seasonApple IncHomePod speakerGadgets
RELATED NEWS
Former worker sues Amazon for not providing lunch breaks Former worker sues Amazon for not providing lunch breaks
Amazon Fab Phones Fest Sale 2021: Smartphone buyers alert! Check best deals, top offers on latest mobile phones and accessories Amazon Fab Phones Fest Sale 2021: Smartphone buyers alert! Check best deals, top offers on latest mobile phones and accessories
Big development! Amazon ordered to shut facility in this country - Here is why Big development! Amazon ordered to shut facility in this country - Here is why
LPG Cylinder Booking Online: You can save up Rs 100 on gas refill - Here is how LPG Cylinder Booking Online: You can save up Rs 100 on gas refill - Here is how
Revealed! What Amazon boss Jeff Bezos said about his ex-wife's marriage Revealed! What Amazon boss Jeff Bezos said about his ex-wife's marriage

LATEST NEWS

Stock Market Outlook: Nifty, Bank Nifty support range REVEALED; Anil Singhvi says global cues, corona cases and FIIs data will be crucial

Mid Cap Picks with Anil Singhvi: Bombay Burmah, Fine Organic and Gujarat Alkalies are Jay Thakkar's top recommendations

FD fraud: SBI issues alert for customers, says avoid THESE things or else you will lose money

Bihar schools, colleges and other educational institutes to remain closed till THIS date—what Nitish Kumar said

Daily Covid-19 cases spike to new record, nears 1.5 lakh infection; Uddhav Thackeray calls all-party meet to review corona situation in Maharashtra

Gold Price outlook, correction, resistance and target—EXPLAINED! This is what Experts say about yellow metal in near to medium term

India leads US and China, administers 100 million COVID-19 vaccinations doses in 85 days

$100 mn investment proposal in Hero Fincorp secured debt: What International Finance Corporation said?

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved