When we talk about the virtual assistants market, we have two main protagonists: Alexa and Google Assistant. Despite the popularity that the Amazon service has garnered in recent years, it seems that it is far from being the “goose that lays the golden eggs” of the American giant.
According to a report released by Business Insider, the division responsible for the development of Alexa generated a colossal loss. The numbers rise to 3 billion dollars in the first quarter of 2022 alone.
Alexa costs Amazon $3 billion
The values shown are the highest within the various divisions that make up Amazon. That is, the department in charge of developing Alexa is the one that currently generates the most damage for the online commerce giant.
These figures demonstrate that Amazon’s strategy for selling hardware through its services is not working. That is, using Alexa as an incentive to buy Echo devices did not go as well as expected.
Internal sources in the Alexa division reveal to Business Insider the failure of Amazon’s foray into this market. Expressions such as “Alexa is a colossal failure of imagination” or “it was a wasted opportunity” are used.
Amazon doesn’t know what to do with Alexa
Testimonials are even more impressive when they mention the lack of goals for Alexa. “There’s no clear guideline for the devices. What are we trying to do? Be the best? The cheapest? When that part isn’t clear, you end up with competing factions.”
These statements attest to the lack of direction for the development of a technology with as much potential as Alexa. Naturally, without a goal in mind, the service ends up stagnating and does not present an evolution capable of captivating new users and retaining current ones.
The goals that drove the development of Alexa never seem to have been achieved. I remember that Amazon promoted its Echo speakers several times as the most convenient way to buy items in Amazon stores.
Still, users continue to favor these products for the most basic commands. Questions related to the weather, music playback or Smart Home device control are the most recurrent among Alexa users.
Despite these reports, Amazon reaffirms its commitment to its virtual assistant and promises to continue to invest in this service. Meanwhile, the company has announced massive redundancies, including the Alexa division.
Aroged editors recommend: