The one thing Amazon (AMZN) didn’t pack into its Fire Phone smartphone was an intelligent assistant. Apple’s (AAPL) iPhone has Siri, Microsoft (MSFT) Windows Phone has Cortana and devices running Google’s (GOOG) Android operating system have Google Now.
I’m not convinced that lack of its own onboard “artificial intelligence” is why the Fire Phone has been such a flop, but apparently AMZN had the technology — it just chose to put it in a speaker instead.
The company caught everyone off guard when a page suddenly appeared on its website announcing the Amazon Echo.
AMZN has released some interesting gear in recent months — the Fire TV set-top video streaming and gaming box, the $219 Voyage premium e-reader and the 3D interface, product scanning Fire Phone — but the Amazon Echo takes it into entirely new territory.
It turns out that Amazon has been working on its own AI that leverages the computing power of its Web Services devision, and it answers to Alexa. Rather than incorporate Alexa in your smartphone or tablet like everyone else is doing, Amazon wants “her” to reside in your home.
The question is, why choose a wireless speaker to house Alexa instead of a smartphone, tablet or TV? And why now?
The answer to the first goes back to Apple’s decision to switch its iOS devices to a new Lightning port, effectively rendering millions of speaker docks (which rely on the previous 30-pin standard) out of date. Bluetooth speakers had always been popular with the Android crowd, but Apple’s move really kicked off the category as iPhone, iPad and iPod owners adopted the wireless speakers instead of models with a physical dock, amid fear of being burned by another port change in the future.
Bluetooth speaker sales have been through the roof ever since. AMZN itself lists more than 50,000 portable Bluetooth speakers for sale.
The NPD Group released a report this year singling out Bluetooth speakers as being the fastest-growing technology category during the holiday season 2014.
That’s the answer to both questions: Amazon Echo is being released in time to catch the holiday rush for affordable high-tech gifts.
But What Is Amazon Echo — Besides a Bluetooth Speaker?
With its built-in Alexa AI, the Amazon Echo is positioned to be the personal assistant you turn to without having to whip out your smartphone. It’s always connected, always listening (it has seven directional microphones) and always ready to answer your questions. Want to know what time it is, what the weather forecast is, what movies are playing nearby? Just ask Alexa. AMZN says that even with music playing and from across the room, Alexa will hear you.
Besides being able to stream music from your device over Bluetooth, the Amazon Echo can also stream music online, including from AMZN’s own Prime Music.
It doesn’t let you buy anything from Amazon just yet (AMZN does note that more features are coming soon), but there are companion apps for the Fire Phone and Android (iOS uses a web browser — undoubtedly to skirt Apple’s 30% cut on in-app purchases) to manage “alarms, music, shopping lists, and more.” Note the shopping lists.
Amazon Echo Specs
- 360-degree speaker with 2.5-inch woofer, 2.0-inch tweeter and bass reflex port
- 7 omni-directional microphones with noise cancellation
- Remote control with built-in microphone
- Bluetooth
- Wi-Fi
- Built-in Alexa learning AI (adapts to speech patterns and vocabulary) using AMZN Web Services
- Power adapter (no battery option — Amazon Echo is meant to be in your home)
- 3.27 x 9.25-inches
- $199 ($99 limited time offer for Prime member)
You can request an invitation from AMZN to pre-order the device here, at $199 or just $99 if you’re an Amazon Prime member.
Will Amazon Echo be a hit, or another Fire Phone?
It actually has decent specs for a wireless speaker, and it looks attractive, too. Even without the AI bit, Amazon could move a lot of these over the holiday season, especially at that $99 offer for Prime members. And if homes do suddenly start sprouting Amazon Echo speakers, Siri, Cortana and Google Now could face serious competition from an unexpected direction.
And just like that, the high-tech battle for the living room could veer from the TV to music.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
