Home Tech Alexa could be a missed opportunity. we tell you why

Alexa could be a missed opportunity. we tell you why

Alexa could be a missed opportunity.  we tell you why


Amazon can’t get the leverage they need to make Alexa profitable. We tell you why.

Alexa could be a missed opportunity.  we tell you why

Alexa is Amazon’s default voice assistant. Making rivalry with Siri or Google Assistant, the assistant of the great former company of Jeff Bezos is in the doldrums. As we saw a few days ago, Alexa would be making Amazon lose moneyaround 10,000 million dollars per year.

With this large sum of money lost, Alexa is being left out for many reasons. We wonder why the assistant can become a missed opportunity for the great American company.

Amazon makes no profit on the sale of devices with Alexa

The first and main problem that we find with Alexa today is that Amazon you cannot make a profit by selling your products Alexa, like echo speakers, alarm clocks etc. These devices are sold at a price, and Amazon no longer makes any profit from those devices.

Amazon Echo Dot speaker with Alexa

It is not profitable for Amazon to sell its devices with such a tight price

The maintenance of the servers and the creation of the devices is quite expensive to the company. The low adjusted prices of these devices for Amazon make it unprofitable to maintain a division like the one they currently have.

We use Alexa in a way that is too basic

Users use assistants in a way very basic the assistent. In other words, we usually use the assistant to play music, ask about the weather in a place or, at most, set the occasional alarm.

alexa connected home

We can control the house from the Alexa app, but it is not as automated as it should be

Alexa had functionalities that, a priori, were a very good idea for the consumer, have ended up not being used by customers, being forgotten or deleted from the assistant. At the time, they added the possibility of being able to order online from different sites. The truth is that we do not just use functionalities of this style at all. To this, we must add that the commands cannot be fully monetized, so there is not much profit margin for Amazon.

Amazon is missing a golden opportunity with Alexa

Alexa is not fully prepared to make the leap in quality that Amazon is looking for in order to obtain real benefit. Alexa can already control and automate a home, but it can be done from the same application, which makes it not as automatic as we would like. Besides, as we have seen, it would be very expensive to update or have a house of this style today, which makes us think a couple of times if it is really profitable to take the leap.

We could configure wizard to perform multiple functions, such as routines. Even imagine a house that was autonomous for many functions, such as the assistant notifying us when the washing machine has finished or when entering the house, the lights would turn on automatically.

EchoShow 5

Most of the voice commands we use is to put music, alarm or time

We think Alexa is a totally missed opportunity both for Amazon and for us. Let’s imagine, for example, functions that would be really useful for us, such as the assistant notifying us before leaving home to bring an umbrella because it’s going to rain (without having to ask us) or indicating a faster route to reach the destination than want knowing where we are going without having to ask.

To this day though, Amazon is still losing billions of dollars from the Alexa division, so we can understand why. the company plans to set aside the division. The future will decide if assistants like Alexa continue to be useful and improve to be profitable for companies or if they definitely end up ceasing to exist.


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