Amazon is putting more emphasis on smart TVs, with the unveiling of three new sizes of QLED TVs and a cheaper model. The TVs can be controlled by voice with Amazon’s Alexa, and are part of the company’s push to put Alexa in as many devices as possible. Dave Limp, Amazon’s hardware chief, said smart TVs are the fastest-growing part of the company’s Fire TV business, which also includes streaming sticks and the Fire TV Cube. However, some executives are concerned about fading Alexa user engagement, and fear Echo speakers may lose their value.
Amazon is ramping up its efforts to expand the presence of its voice assistant, Alexa, into more devices. Since the release of Alexa in 2014, Amazon has incorporated the technology into numerous devices including microwaves, thermostats, and earbuds. With Amazon’s focus on smart home technology, the company is now setting its sights on the TV market.
At a hardware event in 2021, Amazon launched its first TV sets that could be controlled through voice commands with Alexa. The company has continued to expand its line of Fire TVs by adding three new sizes of its QLED TVs and a cheaper model. The addition of these new TV sets to Amazon’s portfolio is seen as a significant move by the company to cement its presence in the smart home market.
According to Dave Limp, Amazon’s hardware chief, smart TVs are the fastest-growing part of the company’s Fire TV business. The company claims to have sold over 200 million Fire TV devices globally, up from 150 million in January 2021. However, as Amazon puts more emphasis on the TV, it risks the possibility that consumers will stop using their Echo smart speakers, which were introduced in 2014 and became a home sensation soon after.
Limp stated that he doesn’t have an Echo in his living room anymore and now only uses his TV. However, Limp rejected the idea that Alexa-powered Fire TV will cannibalize the company’s Echo devices. He pointed out that the numerous form factors of the Echo can be used in any room in the house.
For Amazon to make a significant impact in the hypercompetitive smart TV market, it needs a selling point that goes beyond TV shows, movies, and streaming services. The company is looking at the opportunity to transform the TV into an extra-large smart display that’s always on. Amazon calls this the Fire TV Ambient Experience.
Other companies, such as Samsung and LG, have TVs that display high-quality art or photographs when they’re not in use. Amazon sees the potential for this technology to make better use of dark panels that are typically big black holes on the wall in homes.
Amazon’s focus on TV comes at a time when CEO Andy Jassy has moved aggressively to cut costs, resulting in the largest layoffs in the company’s history. A portion of the layoffs landed in Limp’s organization, which oversees the development of products such as Alexa, Echo smart speakers, and Kindle e-readers.
Despite the layoffs, Limp stated that Amazon is still committed to the Fire TV and Alexa businesses. Since its launch in 2014, Amazon has invested heavily in Alexa and assigned top talent to grow the technology. However, concerns have been raised about Alexa’s fading user engagement, with some executives worried that Echo speakers may follow the path of other once-trendy consumer devices that eventually lost their value.
Despite these concerns, Limp stated that engagement with Alexa devices continues to increase. He emphasized that people use Alexa for many broad things, and the utility of what Alexa brings into the home is unbelievable. Limp believes that Fire TV enhances the overall experience of using Alexa, rather than detracting from it.
In conclusion, Amazon’s push to expand Alexa’s presence in smart TVs is a significant move for the company, as it seeks to cement its presence in the smart home market. Although there are concerns about the impact of Alexa-powered Fire TV on Echo devices, Amazon believes that the numerous form factors of the Echo can be used in any room in the house. With the company’s focus on the Fire TV Ambient Experience, Amazon hopes to transform the TV into an extra-large smart display that’s always on, making better use of dark panels in homes. Despite concerns about Alexa’s user engagement, Amazon remains committed to the Fire TV and Alexa businesses, and Limp believes that Fire.
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