the article talks about how amazon's alexa devices, which use voice assistance, haven't made as much money as they thought they would. the company has spent a lot of money on these devices, so now they are trying to make changes to make them more profitable. people who work on these devices are worried that the changes might not work well, but amazon still believes in them. Read from source...
1. In the article titled 'Jeff Bezos-Amazon Era 'Downstream Impact' Losing Its Mojo? Amazon CEO Andy Jassy Is Reportedly Rethinking Alexa Devices Business Model Resulting In Billions Worth Of Losses', the author focuses on the financial losses that Amazon has incurred due to its Alexa devices business model, stating that it has not yielded the expected results.
2. The author claims that Amazon's strategy of selling its Echo devices at low prices in the hope of generating profits elsewhere within the company has not worked out as planned, and that customers primarily utilized the Echo for free applications.
3. The article mentions that Amazon's devices business, which includes Echos, Kindles, Fire TV Sticks, and video doorbells, has incurred losses of over $25 billion between 2017 and 2021, which is a significant miscalculation made under the leadership of founder Jeff Bezos, which current CEO Andy Jassy is working to rectify.
4. As part of the plan to reverse these losses, Amazon is set to launch a paid tier of Alexa this month, according to the documents. However, this move is met with skepticism by some of the engineers working on the project.
5. Amazon's struggles with its devices business come at a time when the company is making significant changes to its Alexa service, integrating conversational generative AI, according to the author.
Amazon's Alexa device has not performed as well as expected, resulting in billions in losses. Amazon plans to introduce a two-tier system for Alexa, with a premium version potentially costing $5 per month. In addition, Amazon is re-evaluating the Bezos-era "downstream impact" metric, which assigns a financial value to a product based on customer spending within Amazon's ecosystem. This metric has not worked as intended for Alexa devices. The risks and challenges in Amazon's Alexa devices business are evident, but the company still sees opportunities for growth and profitability. As such, it is worth considering investing in Amazon, but investors should be aware of the potential risks and challenges in the Alexa devices business.