Home / Technology / Facebook still does not give up on the market of smart speakers

Facebook still does not give up on the market of smart speakers



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Last October, Facebook (NASDAQ: FB) launched its & nbsp; Portal smart speakers to keep pace Amazon (NASDAQ: AMZN) and Alphabetof (NASDAQ: GOOGL) (NASDAQ: GOOG) Google. Many critics, called Facebook, are launching a dull move as it followed a series of privacy and security issues on the world's largest social network. "Data-reactid =" 11 "> Last October, Facebook (NASDAQ: FB) introduced its intelligent speakers Portal to keep pace Amazon (NASDAQ: AMZN) and Alphabetof (NASDAQ: GOOGL) (NASDAQ: GOOG) Google. Many critics described Facebook's launch as "deaf-opaque" because it followed a series of privacy and security issues on the world's largest social network.

Facebook has not yet released sales figures for the portal. But significant price cuts in April, which cut portal prices up to 50%, indicate that the speakers are not flying in bulk.

Facebook portal and portal +.

Source of the image: Facebook.

Research firm eMarketer estimates that Amazon will control 63% of the US market for smart speakers, followed by Google, with a 31% market share and a 12% market share for all others. Still, Facebook is not giving up – it has recently announced that it will launch two new versions of the portal this fall.

Why will not Facebook abandon the smart speaker market?

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Facebook wants to stay in the market of smart speakers All First, it extends the reach of its core applications – Facebook, Instagram and WhatsApp – beyond personal computers and phones into homes, but can also be used to play videos and games. as well as to strengthen e-commerce services (like its Facebook Live shopping videos), and view more video ads. "data-reactid =" 36 "> Facebook wants to stay in the smart speaker market for a number of reasons: First, it extends the reach of its core apps – Facebook, Instagram and WhatsApp – Beyond computers, phones and in homes, its screens can also be used to play videos and games, as well as to develop e-commerce services (like its Facebook Live shopping videos) and view more video ads.

It allows Facebook to attach more users to its family of apps, which access approximately 2.1 billion users each day. Facebook can then accumulate more data and create more targeted ads for its main advertising business, widening its gap with Google and Amazon.

Facebook also does not want to be excluded from a growing hardware market. Global sales of smart speakers could rise from 208 million this year to 500 million by 2023, according to research firm Canalys. Global deliveries of smart speakers could also exceed tablet shipments by 2021.

A woman leads a video conversation with comic book filters on a smart screen of the portal.

Source of the image: Facebook.

Why Facebook portal devices are still doomed to failure

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Unfortunately, the new devices of the Facebook portal will probably not not much better than the old for a few simple reasons. First, Facebook users simply do not have confidence in the company yet. In a HuffPost / YouGov survey last December, two-thirds of respondents said they did not trust the social network to manage their personal data. "Data-reactid =" 61 "> Unfortunately, the new Facebook portal devices will probably not do it, much better than the old for a few simple reasons. First, Facebook users simply do not have confidence in the company yet. In a HuffPost / YouGov survey last December, two-thirds of respondents said they did not trust the social network to manage their personal data.

Amazon and Google have too much ahead of this market and both companies can leverage the strength of their ecosystems to lock users. Echo from Amazon and other Alexa devices are connected to its ecommerce ecosystem and to an expanding universe of third-party services. Google's home appliances extract data from its ecosystem of services and host many third-party applications.

Finally, the Facebook portal does not use its own virtual assistant. Instead, it relies on Alexa, making it an extension of Amazon's ecosystem. He also reads the Amazon and Google media, which prevents him from expanding his services like Facebook Watch.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Facebook is developing a new virtual assistant for its Portal smart screens and Oculus VR headsets to reduce its dependence on Alexa. But Facebook also arrives late on this market, which is led by AppleSiri, Google Assistant and Alexa. Facebook could equip its new virtual assistant with its new portal speakers this fall, but it is unlikely that this feature will dodge users of smart speakers from Amazon or Google. "Data-reactid =" 68 "> virtual assistant for its Portal smart screens and Oculus VR headsets to reduce its dependence on Alexa. But Facebook also arrives late on this market, which is led by AppleSiri, Google Assistant and Alexa. Facebook may well integrate its new virtual assistant with its new portal speakers this fall, but it is unlikely that such a feature will dodge users of smart speakers from Amazon or Google.

Investors Should Ignore Facebook's Hardware Efforts

Facebook's efforts on Oculus and its portal are attracting a lot of attention, but the company still generated 99% of its online advertising revenue in the last quarter. In other words, these efforts will not get things done anytime soon for Facebook. Investors must therefore focus on its main drivers, such as its main social network and Instagram, rather than on parallel bets such as smart speakers.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 71 "> More from The Motley Fool

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Suzanne Frey, an executive member of Alphabet, is a board member of The Motley Fool. Randi Zuckerberg, former director of market development and spokeswoman for Facebook, as well as the sister of her CEO, Mark Zuckerberg, is a board member of The Motley Fool. Leo Sun owns shares of Amazon, Apple and Facebook. The Motley Fool has stock and recommends Alphabet (A Shares), Alphabet (C Shares), Amazon, Apple and Facebook. The Motley Fool offers the following options: $ 150 long calls on January 2020 for Apple and $ 155 calls from January 2020 on Apple. The Motley Fool has a disclosure policy."data-reactid =" 80 ">John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Suzanne Frey, an executive member of Alphabet, is a board member of The Motley Fool. Randi Zuckerberg, former director of market development and spokeswoman for Facebook, as well as the sister of her CEO, Mark Zuckerberg, is a board member of The Motley Fool. Leo Sun owns shares in Amazon, Apple and Facebook. The Motley Fool has stock and recommends Alphabet (A Shares), Alphabet (C Shares), Amazon, Apple and Facebook. The Motley Fool offers the following options: $ 150 long calls on January 2020 for Apple and $ 155 calls from January 2020 on Apple. Motley Fool has a disclosure policy.


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