Amazon Plans to Unveil New Echo -- Update
May 08 2017 - 4:24PM
Dow Jones News
By Laura Stevens
Amazon.com Inc. is due to unveil a new Echo speaker with a
screen that will incorporate video calling capabilities, according
to people familiar with the matter, keeping the online retailer one
step ahead of tech rivals in seeking to control smart homes.
The new device, which is expected to be announced as early as
Tuesday, will also allow users to make internet-based telephone
calls, according to these people, setting the speaker up to be core
to a home's communications.
Equipped with a 7-inch touch screen, the device will be able to
visually summon answers to verbal questions, providing information
like e-commerce search results in a more digestible fashion. The
new Echo, which has been in beta testing with employees for a few
months, could start shipping to consumers as early as next
month.
An Amazon spokeswoman declined to comment.
The new device is expected to be priced at more than $200. The
current Echo speaker, which doesn't have a screen, usually sells
for $180, although it is currently on sale for $150. Late last
month, Amazon introduced a separate Echo device equipped with a
camera but no screen, the Look, which is priced at $200. The Echo
Look is so far only available to consumers via invitation.
Amazon is in a broader race with a number of tech giants to
create and install speakers using digital assistants to eventually
run homes, cars and offices. Alphabet Inc.'s Google Home is the
biggest competitor so far to Amazon and its Alexa digital
assistant. Microsoft Corp. on Monday introduced its new
voice-controlled speaker, Invoke, made by Samsung Electronics Co.,
that can make phone calls. Consumers are able to use devices like
the Echo and Google Home to turn off lights, close the garage door,
lower the temperature and -- in Amazon's case -- order online. But
none have expanded their speaker devices to include screens
yet.
The Wall Street Journal first reported last year that Amazon's
Lab126 hardware unit was working on an Alexa-powered device
featuring a tabletlike computer screen, allowing users to summon
webpages, videos or images.
Separately, the Seattle-based retailer is expected to announce a
broader rollout of telephone services for Echo devices within the
next few weeks, according to the people, a feature The Wall Street
Journal reported on in February.
Calling capabilities may be rolled out in stages, one of the
people said, for example starting as an intercom within the house
between Echo devices, or between Echo owners. Because the
capabilities are internet based, it isn't expected to require a SIM
card or other mobile phone technology.
Bloomberg earlier reported that Amazon was working on a new
device that was likely to have a 7-inch touch screen, while CNET
reported an announcement of a new Echo was likely to take place
this month.
Amazon's Echo is off to an early lead, analysts say, thanks in
part to its release in 2014. (Google Home was introduced late last
year.) The Echo dominates the market for voice-enabled speakers
with a 70.6% share, digital marketing research firm eMarketer said
Monday. Google Home has the second-highest market share at
23.8%.
"Consumers are becoming increasingly comfortable with the
technology, which is driving engagement," said Martín Utreras, vice
president of forecasting for the firm.
Amazon has also added thousands of applications, from being able
to hail an Uber to order a Domino's Pizza. Until now, developers
have generally limited its artificial intelligence-powered
assistant Alexa's response to a couple options to keep from
overwhelming users.
Amazon's move to introduce its screened Echo device may also be
an effort to head off new competition with Microsoft's Invoke
launch. The personal video call field has long been dominated by
Microsoft's Skype and Apple's FaceTime, among other services.
Earlier this year, Amazon announced its new Chime videoconferencing
service, marking its entry into the market.
The new Echo screen device will likely support some of the same
functionality as the Echo Look, which will enable consumers to take
videos and photos of their outfits and compare them via algorithms,
according to one of the people. It is unclear why Amazon is
launching the two devices so close together or how the market
segments they target may differ.
Ryan Knutson contributed to this article.
Write to Laura Stevens at laura.stevens@wsj.com
(END) Dow Jones Newswires
May 08, 2017 16:09 ET (20:09 GMT)
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