Alexa reportedly a huge failure on track to lose Amazon $10 billion in 2022

Jan

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Amazon Alexa a "colossal failure" — on track to lose R173 billion in 2022

Amazon's Alexa division faces significant job cuts after failing to turn the voice assistant into a money maker, Business Insider reports (the article requires a VPN to access from South Africa and is paywalled).

Alexa falls under Amazon's "Worldwide Digital" group, which recorded a loss of $3 billion (R52 billion) in the first quarter of 2022 and is on track to lose $10 billion (R173 billion) this year.
 

Syphonx

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The ANC would be proud, they are approaching SOE level losses. But on the other hand at least Alexa does work.
 

Dolby

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I love my Alexa.

But they wouldn’t be able to tell who signed up to a service specifically of Alexa?

I’d get my Alexa and decide I wanted a music service - and sign up. No record as to why
 

konfab

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It's almost as if the majority of people don't want the tech overlords recording your every movement.
It isn't that, it is because people don't trust (or simply don't want to) buy stuff online with voice only.

However, despite each device being sold at a cost, the Alexa business model revolves around the company making money when people use the devices rather than from their once-off purchase.

While Alexa became popular to the point that it saw a billion interactions a week, the interactions related to non-monetisable aspects, such as asking for an update on the weather.

if you want to buy something from Amazon, it is just a case of opening an app or a website and clicking 2 buttons on the screen. Much easier and you have immediate feedback about what is happening. With voice you don't get that.

It is the same reason why motion control for games has largely fallen out of favour (except for VR which is extremely niche), you can either use a tiny movement of your thumb to do something, or try and wave your entire arm and hope the computer picks it up.

Think about ordering food through an intercom at a drive through or through the phone, it is usually an infuriating experience because the wagie on the other hand cannot speak english. That is one of the reasons why app driven ordering is a massive industry.
 

RaptorSA

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The law of voice assistants seems to be that it only really works when you first use it or when there's no-one around.

I have a google home and the only thing it's good for is to make me look like a poephol in front of people when it does everything but what I'm asking it, it's no wonder people just use to to ask about the weather.... it gets even worse the more home automation stuff you hook it up to.

Ask it to play your "Likes" playlist on Spotify:
The next thing you know your lights are off, the projector is playing porn, the kettle is cooking itself 'cause there's no water in it, the robot vacuum is hunting the cat, your mother is booked into an old age home and the FBI is monitoring your social media accounts.
 
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ISP cash cow

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Hey Alexa: What is the definition of a colossal failure?
Alexa: it is when you try to monetize everything I say you greedy little b!tch
 
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gregmcc

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While Alexa became popular to the point that it saw a billion interactions a week, the interactions related to non-monetisable aspects, such as asking for an update on the weather.

There devices are all great for home automation, getting info from the internet etc, but I would never order shopping/services from them.
 

Jet-Fighter7700

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all voice assistants are literally the most pointless invention ever,
either they don't work with your accent, or they are a major privacy violation with them recording everything to serve you adverts later on.

problem is Big tech has to keep coming up with stuff all the time, even stuff that there isnt much of a usage case for,
like these voice assistants, I mean sometimes its got a very limited use, but other times its completely useless.
 
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