Echo is priced at $199 (U.S.), Amazon said on its website Thursday. Members of Amazon’s Prime fast-shipping program can purchase the gadget for $99 for a limited period. Consumers need to request an invitation to get the product.
Amazon.com Inc. unveiled the Echo voice-controlled interactive speaker that lets people stream music and order items from the online retailer, as the company works to extend its reach into consumers' digital lives.
Echo is priced at $199 (U.S.), Amazon said on its website Thursday. Members of Amazon's Prime fast-shipping program can purchase the gadget for $99 for a limited period. Consumers need to request an invitation to get the product.
Chief executive officer Jeff Bezos has been spending on new devices to tie people more closely to Amazon, and Echo expands the company's new hardware offerings this year, which also include a smartphone and set-top box. Last week, the Seattle- based Internet retailer unveiled a media-streaming device, the Fire TV Stick, which plugs into a TV set to let users browse video and music from Netflix Inc., Pandora Media Inc. and other content services.
Craig Berman, a spokesman for Amazon, didn't return a request for comment.
Amazon said on its website that Echo works when a consumer speaks the word "Alexa" to wake the device up. The gadget is connected to the Internet and runs on Amazon Web Services, the company's cloud-computing service. Over time, Echo can adjust to consumers' speech patterns and personal preferences, Amazon said.
With Echo, Amazon can plant a voice-activated device in homes that lets users easily order things from the Web retailer. Yet it's unclear if consumers will see enough benefits and convenience to embrace another piece of hardware.
"It seems like an odd and not-very-useful product," said Sucharita Mulpuru, an analyst at Forrester Research in Cambridge, Massachusetts. "The consumer doesn't need yet another device in their home that replicates what they already have on their phone."
Amazon introduced Echo with little fanfare, simply putting up a webpage about the device. In April, Amazon similarly unveiled Dash, a barcode scanner and image-recognition device. Dash also has speech-recognition capabilities, with people able to push a microphone button on the device, say "chocolate chips" or some other item, and have the products deposited into their online Amazon shopping cart.
Many of the new devices are the result of work from Amazon's Lab126 facility in Silicon Valley. Amazon has made at least two acquisitions of speech-technology companies in recent years.
Echo faces competition from other providers of connected speakers including Sonos Inc. and Jawbone. Jawbone offers a line of connected streaming home speakers called Jambox, in a range of colours and sizes costing $130 to $300. Sonos makes speakers starting at $199 that let people stream music from computers, mobile devices and online services such as Pandora and Spotify Ltd.
Some of Amazon's hardware offerings have flopped in the past. Last month, Amazon reported a $170-million inventory charge for the third quarter related to excess supplies of its Fire smartphone.
Michael Pachter, an analyst at Wedbush Securities in Los Angeles, said he doesn't understand why people might be tempted to purchase Echo.
"I think it's just a two-way speaker, but why isn't there just an app that lets me do the same thing without having to spend $99 on hardware?" he said. "I think this is a solution that is seeking a problem."