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Amazon’s Moves on Smart Speakers Spurs Price War | Investopedia

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Amazon.com Inc.’s (AMZN) has taken a low-cost strategy in the smart speaker market, slashing the prices on its Echo voice-activated speaker lineup and prompting its rivals to follow suit. That has resulted in steep declines in prices for the consumer electronics device, something that typically takes a decade to happen.

Citing Consumer Intelligence Research Partners, The Wall Street Journal reported that prices for smart speakers have declined more than 50% this year alone and now hover around $65 to $75, on average. Smartphone prices, for a comparison, have declined 32%, but that is over the course of a decade with the average price around $300. Apple Inc. (AAPL) and Samsung Electronics (SSNLF) both push prices higher with their smartphones by adding new features.

Heading into the holiday shopping season Amazon cut the price of its Echo devices, with the Dot going to $30 from $50. That aided in its ascent to become the best-selling product on Amazon during Thanksgiving weekend. The latest version of the original Echo speaker goes for $100, which the Journal noted is close to half the price of the first Echo that rolled out in 2014. (See also: Amazon: Cyber Monday Was Biggest Shopping Day Ever.)

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Amazon’s Moves on Smart Speakers Spurs Price War | Investopedia.

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