Amazon Alexa is a ``huge failure'' and employees vomit, the loss is at the pace of 1.4 trillion yen annually
Amazon's voice assistant `` Alexa '', which is reviewing the device business that has caused
Amazon Alexa is a “colossal failure,” on pace to lose $10 billion this year | Ars Technica
https://arstechnica.com/gadgets/2022/11/amazon-alexa-is-a-colossal-failure-on-pace-to-lose-10-billion-this-year/
Amazon is proceeding with the largest personnel reduction in history to dismiss up to 10,000 people due to poor sales, and the development team of Alexa, a voice assistant, is the most affected.
It is reported that Amazon will dismiss 10,000 employees, if realized, it will be the largest personnel reduction in Amazon's history - GIGAZINE
Reportedly, the division called `` Worldwide Digital '' to which the Alexa development team belongs has lost $ 3 billion (about 420 billion yen) in the first quarter of 2022 alone. The division is also responsible for Amazon Prime Video, but most of the losses are attributed to Alexa. And the Alexa division's hardware team is on track to hit $10 billion in losses for the full year, twice as much as any other division.
Twelve current and former employees of Amazon's hardware team who testified in the report describe the Alexa division as a 'division in crisis'. And Amazon's plans to monetize Alexa have all failed, according to Alexa employees, with some employees describing Alexa as a 'huge ' failure of imagination ''. Some people call it a 'missed chance'. This time Amazon's largest personnel reduction in history is positioned as a price that could not improve Alexa's deficit constitution.
If you have been criticized so far, you will get the impression that Alexa-equipped devices are not selling at all, but in fact the Amazon Echo series is one of Amazon's best-selling products. However, the fact is that hardware sales are not profitable because they are sold at almost the same price as the original cost.
The main hope is that Alexa, which has become popular in users' homes, will earn money, but since Alexa does not advertise, there is no advertising cost, and few people order products from Amazon via Alexa. did. According to a report on Alexa, a four-year study tracking consumer spending on Alexa found that 'Alexa has a billion conversations a week, most of which are playing music or hearing the weather. It was a trivial command such as confirmation of '.
Amazon isn't the only big tech struggling with voice assistants. Google's monetization of the Google Assistant has also been difficult, and the October 2022 earnings announcement revealed that Google had almost the same problem as Amazon. Therefore, Google has responded by reducing the resources devoted to the Google Assistant division, similar to Amazon.
On the other hand, Apple set an ambitious price of $ 350 (about 50,000 yen) for the original HomePod equipped with Siri and challenged to build a model to recover profits from hardware, but it was not accepted by consumers. HomePod was forced toend production in March 2021.
After that, Apple is looking for a way to revive the big HomePod while releasing the `` HomePod mini '', a smart speaker that has lowered the size and price of the main unit.
Even though it is 10,000 yen, a smart speaker ``HomePod mini'' review that can accurately ``Hey Siri'' even in the explosion with simple initial settings like Apple-GIGAZINE
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