The Christmas discount of the Echo Dot and Home Mini has led both companies to sell their products for a few dollars less than it costs to produce them.
The Echo Dot was the most sold product in Amazon this Christmas, which was celebrated by the company as a sign of the future that has its smart speaker. But that sales boom does not necessarily imply that smart speakers are good business.
According to analysts consulted by Reuters , Amazon and Google are losing money with the sale of their smart speakers. The price reduction in the Echo Dot and Home Mini devices in the face of the Christmas campaign has led both companies to sell their products for a few dollars less than it costs to produce them , according to experts.
Making the Echo Dot costs around $ 31, according to the analysis of ABI Research, while the components of the Home Mini cost around $ 26. These figures do not include general expenses, shipping costs and others. If we go to the sale prices, we see that Amazon’s smart speaker costs $ 29 right now, the same as Google’s. In addition, the Mountain View company has given the device to the buyers of their new Pixel 2 smart phone.
The reason for this aggressive discount campaign is that Amazon and Google are eager to offer consumers a sample of their respective digital assistants, Alexa and Google Assistant. By making their speakers more affordable , the two companies hope to build customer loyaltyand benefit from subsequent sales of goods and data on buying habits.
We do not know if this will be the case of Apple’s HomePod , which will now reach the market. Although its price, $ 349, suggests that the apple company has chosen another strategy for their product.