Amazon Alexa to lose $10 bn this year: Report
San Francisco
22-November-2022

Photo : IANS
Amazon Alexa is reportedly on a pace to lose $10 billion this year as the voice assistant never managed to create an ongoing revenue stream.
According to Business Insider, one of the hardest hit areas is the Amazon Alexa voice assistant unit, which is losing favour with the e-commerce giant.
This group lost $3 billion in just the first quarter of 2022.
The report says the hardware team is on pace to lose $10 billion this year.
A former employee described Alexa as a "colossal failure of imagination" and "a wasted opportunity", according to the report.
Jeff Bezos reportedly lost interest in the project in 2020, and new CEO Andy Jassy is less protective of Alexa.
Watch This TWL Video
The report claims that Amazon's Echo line is doing well, but the majority of the devices are being sold at a loss.
One document reportedly described that the business model makes money when people use the devices rather than when they buy them.
However, by the fourth year of the experiment, most people were only using Alexa for trivial commands like playing music or asking about the weather, said the report.
The plan was ultimately unsuccessful because those questions do not lead to monetisation. - IANS
More Headlines
AI Cybersecurity Startup Neural Defend Raises $600K in Pre-Seed Round
Chennai Doctor and Family Found Dead Amid ₹5 Crore Business Loss
Karnataka Withdraws CID Probe in Ranya Rao Gold Smuggling Case
New Kerala Guv Strikes Cordial Tone, Hosts CM Vijayan And FM Sitharaman In Delhi
Digital Payments Surge in India: 18,120 Crore Transactions in FY24-25
AI Cybersecurity Startup Neural Defend Raises $600K in Pre-Seed Round
Chennai Doctor and Family Found Dead Amid ₹5 Crore Business Loss
Karnataka Withdraws CID Probe in Ranya Rao Gold Smuggling Case
New Kerala Guv Strikes Cordial Tone, Hosts CM Vijayan And FM Sitharaman In Delhi
Digital Payments Surge in India: 18,120 Crore Transactions in FY24-25