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Amazon's Alexa is Getting Clobbered (axios.com) 86

An anonymous reader writes: In the first quarter of 2016, Amazon Echo held 80% of the global smart assistant market, according to marketing research firm Canalys. Chinese companies were so far behind that they registered zero. But just a year later, Amazon has collapsed to a 28% market share, behind Google Home's 36% and ahead of China's Alibaba and Xiaomi with a combined 19%. Amazon had a strong head start with its Echo lineup, which launched in 2014. But now it's losing ground both in the U.S. and China, the leading markets for the devices.
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Amazon's Alexa is Getting Clobbered

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  • by Anonymous Coward

    And are we supposed to shed crocodile tears for Amazon over this? Oh no! This one spying device now has less marketshare than a bunch of other spying devices! Oh the humanity!!

    • by Sique ( 173459 ) on Monday July 02, 2018 @01:28PM (#56881070) Homepage
      Just because the market share of Alexa went down doesn't mean the absolute numbers of Alexa devices are down. There are now even more devices spying, but not from Amazon, and they are dwarfing Amazon's numbers.
      • by ShanghaiBill ( 739463 ) on Monday July 02, 2018 @01:41PM (#56881162)

        they are dwarfing Amazon's numbers.

        TFA is about sales, not the installed base.

        There are about 20 million Amazon Echo devices in use.

        There are about 7 million Google Home devices.

        Amazon still dominates.

        Disclaimer: I have both an Echo and a Google Home. I use the Echo more because it is in the kitchen, which is convenient for news updates, voice management of shopping lists, etc. The "Home" is in my wife's home office, and she uses it mostly for listening to music.

    • The "article" is vacuous. Shorter than even a typical USA today article. Have attention spans reached that low now in the age of smart phones? No article longer than the mean time between twitter update beeps to nudge your attention away.

      Anyhow the claim of the article is because foreign based internet systems do poorly in the chinese market that Chinese people buy home domestic systems.
      Presumably the reverse it true. I'm not tempeted to buy a TenCent or baidu based smart speaker for my home in the USA.

    • by Oswald McWeany ( 2428506 ) on Monday July 02, 2018 @01:39PM (#56881138)

      To be fair... yeah, they all track everything you do with those devices. I find Google's to be more invasive though.

      If you adjust ANY privacy settings in your google profile to not track you then the Google Home won't work. You have to completely open yourself up to google and have wide-open inadvisable permissions in your google account just to use the Google Home. Because I told Google not to track certain aspects of my web browser google home won't work.

  • by xxxJonBoyxxx ( 565205 ) on Monday July 02, 2018 @01:14PM (#56880960)
    >> Amazon has collapsed to a 28% market share, behind Google Home's 36% and ahead of China's Alibaba and Xiaomi with a combined 19%

    This is GLOBAL share. To get to a 28%/36% global share counting the shole that is China and it's direct-to-BigBrother home "shopping/health" appliance is still pretty amazing. (That's a majority share in countries where free speech is still at least a concept.)
  • by Headw1nd ( 829599 ) on Monday July 02, 2018 @01:16PM (#56880984)
    I still don't have a good intuition as to what the market for smart speakers is, and how large it might be. Unfortunately the blurb doesn't have any details on what the size of the market is, or how the market in 2018 might be compared to 2016. It doesn't even mention if amazon alexa sales are increasing, flat, or declining.
    • You're on the right track:

      https://voicebot.ai/2017/07/14... [voicebot.ai]

      In the 1st quarter of 2016, Amazon Alexa was the *only* home assisted speaker. The only other major voice controls were siri, google now, and cortana. They all got their start on phones. Of course, if you are the only player in a field, you can expect a highly inflated market share. But, being 25% of the market of 4 competitors is kinda about where you should be sitting.

      It would be stupid to think you can get 50+% in a competitive field.

      (Apple does

    • I still don't have a good intuition as to what the market for smart speakers is, and how large it might be.

      Well, how many people are there on the planet, how many of them live in a country where these smart speakers are available, how many of them can afford one and how many of them are stupid enough to actually buy one?

    • I believe they should be called "Smart Listeners" rather than "Smart Speakers".
  • Look, if I have five companies, three of which are heavily subsidized and required by their large population nation states, and two of which have already achieved market saturation, I can't actually compare the small US market share of the non-subsidized companies to the quickly growing and underserved market share in India, China, and countries which have large populations and market dominance by very few subsidized players.

    Wake me in five years and we'll talk about who will survive.

  • by Anonymous Coward

    What else was there to compete? Amazon was the market with their Echo device back then. Market interest grew, companies threw products to catch up and voila, here we are. Further, Amazon was almost exclusively the US market only with initial Echo. This article is making it sound like Amazon had 80% of the existing market. Their own chart showing Amazon vs Google since Q1 2017 shows Amazon selling a total of about 30 mil in that range, where Google hasn't even hit 20 it seems? So, yeah, Q1 2018 google outsol

  • by Kenja ( 541830 ) on Monday July 02, 2018 @01:42PM (#56881164)
    Some sort of platform, that advertises that they can rapidly add servers to your platform, they could call it the Awesome Web Services platform or AWS for short!
  • Get rid of surveillance devices in your house TODAY.
    • Well, you may also consider that those who do have one in their house willingly just actually deserve to be under surveillance. Some kind of natural selection.

      The problem though is that it has indeed long-term impact on all of us, even those that refuse to have those kind of devices. Because the more people will use them, the more they are bound to become, first, a commodity, then eventually become mandatory (of course for national security reasons). This logical path is so obvious that I have a really har

      • Because the more people will use them, the more they are bound to become, first, a commodity, then eventually become mandatory (of course for national security reasons). This logical path is so obvious that I have a really hard time believing that it won't actually happen. Hope to be proven wrong.

        You, and the guy below you, really sound like trollololololols. I'll just say this: if I'm still alive and the world has become that far gone, then I won't want to keep living in it -- and I'd take as many jackbooted thugs with me as I could before they nailed me.

  • by Dan East ( 318230 ) on Monday July 02, 2018 @02:05PM (#56881338) Journal

    TFA does not give any actual numbers - only relative percentages. It is possible Alexa's user base has actually grown, but since China now has some sort of similar service, the global market share percentage of Alex will have dropped. That is a pointless statistic, especially if Amazon has not been targeting China in the first place.

    • by Anonymous Coward

      Yes, for instance there’s the Alibaba virtual assistant “Aloxa” which runs on their new internet-connected device “Etcho”. Those seem to have come out of nowhere...

  • Tell us the story again about "Alexa."
  • by quarrel ( 194077 ) on Monday July 02, 2018 @05:18PM (#56882530)

    When I got my two Alexa Echo's it was primarily to easily play my own mp3 collection in some rooms, but it has a few other extra features, like radio stations etc that were good.

    Fast forward to today, Amazon have announced that I will no longer be able to play my own collection through Alexa, and they'll cut me off next year.

    I'm pissed at them, and hope the new generation of devices that give user choice, rather than lock-in to a subscription model, win.

    I'll be perfectly happy if the innovators are Chinese. I'd rather reward their skill than their place of founding.

    • by novakyu ( 636495 )

      When you say "my own collection", you mean MP3s that you didn't purchase through Amazon, right?

      Yeah. That was a bummer; it was good to have music from local bands uploaded to my Amazon account and have it available everywhere (if Amazon had sold their music, I would've bought them through Amazon).

      One downside of Amazon Alexa compared to Google Assistant seems to be Amazon Alexa, even on a Fire device, is just an app that can't control other apps. I have music downloaded from Amazon on my tablet device, and

  • What are /. opinions of Mycroft.ai [mycroft.ai]? For those who've never heard of it, it is a commercial effort to create and maintain open-source software to compete with Alexa & co..

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