Amazon examines the profitability and future of Alexa in the company › jojo Reviews

Hardly any service offering is as closely tied to the Amazon name as the voice assistant Alexa, which is a major (arguably the most important) selling point for the company’s many Echo speakers.

But the computer voice, rated by many users as the best voice assistant on the market, is definitely not profitable.

CEO is looking for potential savings

The Amazon division responsible for Alexa and its associated Echo devices is said to have suffered losses of up to $5 billion annually in recent years.

How this will impact language aid and its further development in the company is currently being explored by Amazon CEO Andy Jassy.

Jassy inherited the position from founder Jeff Bezos in the summer of 2021 and is said to have sparked a discussion in the group about whether Amazon should continue to expand its Alexa capabilities or, in search of cost-saving opportunities, also include in the Alexa department. Red pen will start.

Many users only use Alexa a little

While Alexa itself has countless users, many of them would integrate only a fraction of the possible Alexa features into their daily lives.

The Wall Street Journal reported mid-week that Amazon plans to counter the company’s impending fall in value by seeking savings opportunities, which immediately boosted the online retailer’s stock price.

It remains to be seen what effects potential cost savings will have on the long-term range of features, usability and functionality of the popular voice assistant. It is also possible that Amazon decides to start monetizing Alexa more than before and increasing the share of advertising messages.

What do you think?

Written by Kim Anderson

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