23/7/2024, 1:13:03 pm

Alexa is in millions of households—and Amazon is losing billions

Amazon's Echo smart speakers have been a commercial success, with millions sold, but the company incurs significant losses on each device. The cost of producing an Echo speaker is around $30, but Amazon sells it for $50, resulting in a loss of around $20 per unit. This strategy is intended to drive adoption and encourage customers to use Amazon's services, generating revenue through subscription.