An investigation by The Wall Street Journal found that Amazon Devices, which includes Alexa, doesn’t have a clear timeline for turning a profit, instead focusing on long-term innovation.
The company reportedly sold the devices at a loss, hoping that future revenues would cover the startup costs. However, anticipated revenue from Alexa voice commands was insufficient and revenue from Alexa-related purchases was minimal.
Amazon’s strategy now includes a subscription-based generative AI for Alexa, aiming to expand its capabilities and potentially attract paying customers. But skepticism persists about whether people will accept another subscription amid growing fatigue among people with too many subscription services.
Source: Ferra
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