Amazon Factoid: Home Speaker Department

July 9, 2018

Short honk: I read “What Cracking Open a Sonos One Tells Us aboiut the Sonos IPO.” In the write up was an interesting to me item of information. Here is what I noted:

Even though both [Sonos and Echo Plus] of these products are different in pretty much every decision that was made surrounding the hardware, they use the same backend Alexa service (where most of the IP is) from Amazon.

Interesting. Amazon’s approach allows it to generate revenue from a customer (maybe partner?) and from its own product line.

This appears to be a double dipping approach of value. What happens if Amazon decides to raise its prices for a customer (partner)? I suppose the Sonos-type outfit can hightail it to IBM’s, Google’s, or Microsoft’s cloud.

That may pose costs, timing challenges, and technical hoops. The time required by a Sonos-type outfit might be enough to allow Amazon to shave a few seconds off its lap time.

With Google slashing prices for its home gizmos, the home data ecosystem may become more interesting in the months ahead.

Stephen E Arnold, July 9, 2018


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