Sunday, November 9, 2014

Amazon Echo: Will it Resound with Consumers or Come under Fire?

Amazon has not wowed consumers yet this year with an innovative product. The Fire smartphone was a flop as it was unable to compete with brands like Apple. This past week, Amazon may have redeemed itself with the unveiling of the Echo voice-controlled interactive speaker. The speaker allows people to stream music and order items from Amazon. The aim of the device is to open another route into the digital lives of consumers. Amazon dominates as a one-stop online shop; to continue growing, it needs to keep innovating with a focus on expanding its customer base. Echo is appealing for its voice-activation features and its ability to “get smarter over time.” The product will continue to add new services, much like smartphones, as time goes on. Echo awakens to the word “Alexa” and reacts to questions in the same way that Apple’s Siri does. Echo connects to the internet, runs on Amazon Web Services, and (over time) adjusts to consumers’ preferences and patterns of speech. Far field technology allows the speaker to respond to a query from across the room. When first reading about the speaker, it seems like the most difficult adjustment to make would be not having a tangible screen. The ability for consumers to order from Amazon online through their speaker without being able to see it could become a dead-end feature for most purchasers. Amazon thought of that though, and introduced a solution: an app that connects smart devices to the speaker.

The question is now whether Echo is worth investing in if it only does what multiple devices (smartphones, laptops, etc.) already do. Speed and clarity will have to be on point for this device. If it is easier to pull your phone out of your pocket and look something up then ask Alexa, the device will fail. The far field technology Amazon says allows Alexa to be spoken to from anywhere in the room needs to be as good as the company says it is, too. Echo is appealing as a standalone system that does not require any touch when you are elbow-deep into kneading dough and have a question about your recipe. The speaker has to respond quickly and accurately. Echo joins the Fire smartphone as this year’s new hardware offerings; the smartphone was not successful, due mainly to a lack of functionality. The smartphone was intended to push more consumers into Amazon Prime, as it offered a free trial with purchase of the phone. It appears that Amazon is trying this again with Echo and its ability to order from Amazon Web Services. What remains to be seen is if this device offers a unique service that will appeal to consumers who already have other ways to order off of Amazon online. Being able to order without actually touching a screen may end up playing into Amazon’s favor. Amazon has acquired at least two speech-technology companies in recent years, indicating that this product will be one of many innovative offerings to come.

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