Amazon slashes price of new Echo speaker to $100 and shows off other new products

Amazon.com Inc. will head into the holiday shopping season with a simple wish list: It wants voice-controlled devices featuring its digital assistant Alexa to become as ubiquitous in people's homes as televisions.

The online retailer is slashing prices to undercut Google, introducing better acoustics in response to a forthcoming Apple speaker and rolling out new formats to appeal to different tastes and needs.

“We want to make sure we are building a product that everyone can use,” David Limp, Amazon's senior vice president of devices and services, said during a Wednesday event showcasing the company's holiday product lineup at its Seattle headquarters.

So far, Amazon has proved far better at discounting a potpourri of goods online than at making devices. Most notably, it tanked in its attempt to make a smartphone, putting it at a disadvantage against Google and Apple — the makers of Android and the iPhone, respectively — in the battle to stay connected with consumers when they're on the go.

A home-style approach

Amazon has found a way to play a bigger role in people's homes with the Echo, an internet-connected speaker starring Alexa as a concierge who can do such things as order a pizza and turn out the lights on command.

Amazon won't say how many Echos it has sold since the device's 2014 debut. Limp would say only that “tens of millions” of devices currently include Alexa and that Amazon now employs more than 5,000 people trying to make the assistant even smarter.

The Echo's popularity prodded Google to introduce its own internet-connected speaker, Home, with a digital assistant last year. Apple is scheduled to roll out its own speaker, the HomePod, in December.

Google has been positioning its speaker as a less-expensive alternative with a smarter assistant. Amazon now aims to erase the price advantage with the next generation of the Echo. The new version will sell for $100, a 44% reduction from the $180 price for the current version.

Google's Home speaker sells for $130, but that price could be lowered next week when the company is expected to unveil its own holiday lineup in San Francisco.

Going upscale

Amazon is adding higher-fidelity equipment to the next-generation Echo in an apparent response to the HomePod. Apple is promoting its speaker primarily as a superior sound system for music, although it will also feature Apple's digital assistant, Siri. The HomePod, though, will cost $350 — three times as much as the next-generation Echo.

For those who want even better sound and more features for controlling internet-connected lighting and appliances inside the home, Amazon also is introducing the Echo Plus, a slightly taller speaker that will sell for $150.

Pre-orders for both the new Echos began Wednesday. Amazon hasn't set a precise shipment date, but it said both devices will be ready before Christmas.

Amazon also will begin selling the Echo Connect, a digital device that can serve as a speaker system for a home phone landline. It is introducing small devices for playing games called Amazon Buttons and an Alexa-powered device with a 2.5-inch screen called the Echo Spot. The Spot, designed to resemble an alarm clock, will cost $130.

Video streaming

Amazon is also engaged in a fight to become the preferred device for streaming video.

It unveiled a new version of its Fire TV player that will stream 4K video like its predecessor but sell for $70, down from $100 previously. Apple's latest streaming player, by comparison, sells for almost $180. Other companies such as Roku and Google sell streaming devices at prices that are comparable to or lower than Fire TV’s.

Amazon also announced that BMW is joining automakers such as Ford, Hyundai and Mercedes-Benz that are incorporating Alexa into their dashboard consoles. Those alliances with automakers still might not be enough keep Amazon and Alexa competitive with Google and Apple outside the home, given the software made by those two power most of the smartphones in the world.

There had been speculation that Amazon is working on a pair of internet-connected glasses that would make it easier for people to take Alexa with them wherever they go, but no such device was mentioned Wednesday.


UPDATES:

2:55 p.m.: This article was updated with additional information about Amazon’s product announcement and competitors.

This article was originally published at 11:55 a.m.

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