Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
voice assistant Alexa
Tech and Marketing

Alexa voice assistant forces Amazon to go to extremes

05.02.2023
2 min read

Alexa is a nonprofit destination for Amazon

The technology giant Amazon is experiencing difficult times, which have affected almost all major IT corporations. To cope with the crisis, the company made the largest layoffs in its history – about 10,000 employees. The biggest difficulties arose in the division that is engaged in the development and support of the voice assistant Alexa.
Service Alexa was launched 10 years ago, but during this time it has failed to bring the company a significant income. According to the publication Business Insider, this direction, in fact, is unprofitable. It is part of the division Worldwide Digital, which includes the services of Amazon Prime Video. According to official data from the corporation, only the first quarter of last year ended in this direction with a loss of $3 billion, and most of this amount was due to Alexa. For all of 2022, the hardware line’s losses totaled about $10 billion. According to some Amazon employees, management has failed to effectively monetize the use of Alexa, and now the situation has reached a tipping point that requires firing the development team.
And the problems with the monetization of the service became evident back in 2019, then the leadership was looking for options to fix it. Then it was decided to suspend the hiring of new specialists in this area.AlexaThe Alexa Echo line is one of the most popular products on Amazon, but most of the devices it includes are sold at cost. This is due to one of the company’s unspoken principles, which is that the business makes money not from selling devices, but from using them. The main bet in the case of Alexa was that people would buy items on Amazon through the voice assistant. In practice, however, not everyone is willing to trust artificial intelligence to make a purchase; people prefer to do their own shopping. During 4 years of active use of Alexa service, the vast majority of requests from users were related to simple commands and requests, such as getting information about the weather or asking to turn on the light/music. As a result, monetization of the voice assistant is extremely difficult.
One of the options for Amazon to generate revenue from the service is to collaborate with other companies. For example, through Alexa, you can call Uber or order pizza from a certain network. However, such a collaboration does not bring in much money to cover the content of the division. At the same time, the service is popular among consumers: by the number of users (71.6 million people) it is in third place after similar products from Google and Apple. This raises the question of the profitability of such voice assistants in general.

Tags: Tech and Marketing
0
Previous Post Merck announced a deal with Imago Next Post Cryptocurrency whales are buying up Ethereum altcoin as its price has fallen

You Might Also Like

IT platforms
Tech and Marketing
How IT platforms help to effectively conduct business: the experience of companies
24.04.2022
Digital currencies of central banks
Tech and Marketing
Digital currencies of central banks: prospects for the development of a new instrument
04.04.2022
EU digital wallet testing
Tech and Marketing
EU digital wallet could replace plastic cards and paper documents
15.07.2023
spending on the metaverse
Tech and Marketing
McKinsey: spending on the metaverse could reach $5 trillion by 2030
28.08.2022
content matrix
Tech and Marketing
Content Matrix as an effective tool for promotion in social networks or through the site
18.06.2022
innovations in business
Tech and Marketing
Why innovations are important for business development
03.07.2022

Recent Posts

  • 1investment in Turkey's steel industry
    Yıldız increases investment in the Turkish steel industry
    20.09.2023
  • 2Abu Dhabi Exchange
    The Abu Dhabi Exchange has created ideal conditions for the IPO of an Adnoc unit
    18.09.2023
  • 3mobile marketing
    How mobile marketing helps to retain existing customers and attract new ones
    16.09.2023
  • 4E-commerce company Rakuten
    Japan’s Rakuten intends to raise funds by issuing shares
    14.09.2023
  • 5coal mining
    Coal mining in India has increased by more than 22% in 5 years
    12.09.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Latest Posts

investment in Turkey's steel industry
Yıldız increases investment in the Turkish steel industry
20.09.2023
Abu Dhabi Exchange
The Abu Dhabi Exchange has created ideal conditions for the IPO of an Adnoc unit
18.09.2023
mobile marketing
How mobile marketing helps to retain existing customers and attract new ones
16.09.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023
  • Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics