Amazon is Reportedly Building a Microwave, Amp, and More

CNBC’s Eugene Kim just posted a report that Amazon is reportedly working on new Alexa-enabled devices for the home and car, including a microwave. Per Kim:

Amazon is doubling down on its Alexa-powered devices, with plans to release at least 8 new voice-controlled hardware devices before the end of the year, CNBC has learned.

The devices include, among others, a microwave oven, an amplifier, a receiver, a subwoofer, and an in-car gadget, people familiar with the matter said.

Our take:

  • We believe home appliances will be a major area of emphasis for Amazon as it increasingly builds out its home automation ecosystem. Amazon already makes a variety of Alexa-enabled hardware devices for the home, and is expanding into home automation and security through its Ring and Blink acquisitions. Currently, GE sells an Alexa-enabled microwave on Amazon, but Amazon should be able to achieve more seamless integration by building it directly.
  • We also believe that car appliances will be a major area of emphasis for Amazon. Logistically, there is so much opportunity in the car for voice-powered services to thrive.
  • Improving its lineup of smart audio hardware offerings also makes sense for Amazon. Currently, that need is filled by firms like Sonos, which sells the Alexa-enabled Sonos One. Amazon has not exactly targeted audiophiles with its current lineup of Echo devices.
  • Amazon is also working with home building partners to create “Amazon Experience Centers” – model homes with Alexa integrations (currently in US with Lennar and India with Embassy Edge). There could be an opportunity to sell homes stacked with Amazon goods that would create higher barriers to switching for homebuyers and give Amazon large B2B sales channels.
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