According to reports, Amazon Alexa is on track to lose $10 billion this year since the voice assistant was unable to establish a reliable source of income.
According to reports, Amazon Alexa is on track to lose $10 billion this year since the voice assistant was unable to establish a reliable source of income.
With plans to cut 10,000 jobs across the company, Amazon is currently undergoing its largest-ever round of layoffs. Just the first quarter of 2022 saw this organization lose $3 billion. According to the estimate, the hardware division is expected to lose $10 billion this year.
According to the story, a former staffer called Alexa “a wasted opportunity” and a “colossal failure of creativity.”
In 2020, Jeff Bezos is said to have lost interest in the initiative, and Andy Jassy, the new CEO, is less protective of Alexa.
Despite the fact that most of the gadgets are being sold at a loss, the research indicates that Amazon’s Echo line is performing well.
According to one paper, rather than making money when customers purchase the devices, the business model really makes money when customers use them.
By the fourth year of the experiment, the majority of users were, however, just using Alexa for simple requests like playing music or inquiring the weather, according to the research.
Because there is no way to monetize those inquiries, the concept eventually failed.
