Amazon has managed to position several devices, but they do not seem as profitable.
Amazon devices generally represent a very good value proposition thanks to their affordable prices.
The customer takes a smart device, while Amazon is increasingly present in his life, making Alexa , his digital assistant, part of popular culture.
But does Amazon cash in on affordable devices like its Echo smart speakers ? Maybe not.
Insider analyzed internal Amazon data, where it found that the “Worldwide Digital” business unit, which includes Echo devices , Alexa and streaming service Prime Video , lost $3 billion in the first quarter of 2022.
Most of these losses came from Alexa and other Amazon devices , a source told Insider .
Insider estimates the division is on pace to lose $10 billion this year.
Why Alexa is not a gold mine
Amazon’s intention was for customers to use Alexa for their purchases, but this is not as popular.
Instead, customers have interactions that don’t generate money for the company, like asking the time or asking about the weather.
It was precisely the team behind Alexa one of the first hit by the staff cuts at Amazon .