Echo Growth Slows – Displays Increase Engagement

What They Say

Just before we broke for the holiday, Bloomberg reported that it had seen internal documents from Amazon that said that smart speakers are no longer in a growth phase and forecast only 1.2% growth for its Echo units. There were some interesting statistics.

  • A quarter of U.S. households owned at least one Alexa device in 2020, data shows.
  • According to the documents, there were years when 15% to 25% of new Alexa devices went unused after only a week, suggesting a novelty of the devices that wears off over time.
  • Meanwhile, just over 55% of Echo Dot owners use it on a weekly basis, and two-thirds of standard Echo use it at least weekly.

The firm did find however, that the weekly engagement rate is higher — nearly 75% — for Alexa devices with screens.

What We Think

Well who would have thought that an Echo with a display would have been more engaging? (British sarcasm). I have thought about replacing the Echo dot and the digital photo frame that I have in our main room with an Echo Show. Perhaps next Prime Day? Having said that, there’s a good price on an Echo Show 8 at the moment….. (BR)

Echo show 8 proc