Amazon unveiled a new Echo smart speaker, a $39.99 semi-sphere called Echo Pop, meant for bedrooms and other small spaces in the home, set for release May 31.
The company also announced a new version of its Echo Buds wireless earbuds, with counterbalancing stems reminiscent of Apple’s AirPods, for $49.99. Due for release June 7, they’re available for preorder at an introductory price of $39.99.
Alexa device sales: Amazon disclosed for the first time that more than 500 million Alexa-enabled devices have been sold since the Echo debuted as the first in late 2014. The total includes devices from Amazon and other companies that let users interact with its Alexa voice assistant.
“I think we are at an inflection point where we will generate more and more utility for our customers,” said Rohit Prasad, senior vice president of Alexa, in an interview with GeekWire. He cited the size of the installed base as key to Amazon’s vision for “ambient computing,” where users can interact with Alexa anywhere.
Rise of generative AI: Amazon competes with companies including Google, Apple, and Sonos in the market for smart speakers. However, much of the attention in the broader market is focused on the rapid development in generative artificial intelligence, where sophisticated interactions with new large language models are setting a new bar for virtual assistants.
Amazon CEO Andy Jassy told analysts last month that Amazon is working on a new large language model of its own that will be “much larger, and much more generalized, and capable” than its current models.
Prasad declined to speak to Amazon’s roadmap or release timing. However, he said, “What we have working in the lab is going to be delightful for customers.”
Alexa will become more conversational as a result, but Prasad cautioned that it isn’t as easy as simply adopting the same approach as text-based AI engines such as OpenAI’s ChatGPT. This is complicated by the nuances of voice interactions and small screens in the home.
“It’s not just about conversations,” Prasad said. “We are also using the context around you to serve more good hunches [and] automate more actions through routines.”
Large language models are helping Alexa “in a big way” with informational queries, such as asking for a sports score, providing an alternative to traditional search engines, he said, noting that usage in this area is growing by more than 50% on Alexa.
Shopping queries, including reorders and requests for product information, are another area where Amazon is seeing increased usage of Alexa, up by more than 40% year-over-year, he said.
Asked about the gap between Alexa and ChatGPT, Prasad disagreed with the premise.
“I wouldn’t call it a gap, because a lot of the things that Alexa can do, ChatGPT can’t,” he said. He cited, for example, Alexa’s ability to learn the preferences of its users, such as the fact that they might prefer a vegetarian meal when suggesting a recipe.
In-home device strategy: As part of its product updates, Amazon also announced a revamped version of its Echo Show 5, the version of the device with a 5.5-inch screen, upgrading the speaker system for better bass and overall sound, for $89.99. A new Echo Show 5 Kids Edition sells for $99.99. Both are set for release May 31.
The company also said it’s releasing its Echo Auto device in eight additional countries: Australia, Canada, the United Kingdom, Germany, France, Italy, Spain, and Japan.
These are the first major updates to the Echo lineup since Amazon announced layoffs in its Devices & Services division as part of its broader cutbacks starting earlier this year.
Google last week announced a new $499 Pixel Tablet with a smart dock that combines the functionality of tablet and home smart speaker, which puts a new twist into the competitive landscape for Echo.
However, Prasad said Google’s approach brings challenges.
“There’s a huge difference between a communal device and a personal device,” he said. “Those are the things we’ve grappled with before.”
He said Amazon believes in the strategy of offering high-end home devices as part of a central home hub, augmented by more affordable devices with screens in other rooms of the house.
“You don’t need to have one that you take from one place to the other,” he said. “Instead, you can fill your house with these, where the ambient AI that’s personalized to you is available wherever you are, and it takes real-world actions for you, not just in the virtual world.
He added, “I believe our strategy here is right for the customers, and the traction that we have speaks for itself.”
