An analyst says that Google can dominate Amazon's smart Home Mini speakers – BGR

Brian Nowak, an analyst at Morgan Stanley, is responsible for a news feed this morning thanks to a call he's made to Google in light of Amazon's dominance in the market Smart speakers – a market that, according to Gartner, In Nowak's opinion, Amazon, with its range of Echo brand devices, crushes it to such a degree that Google should spend 3, $ 3 billion to just give the "Mini". version of its Google Home smart speaker, which costs $ 49. "A way of seeing things," Nowak writes in a note from the analyst who puts forward his reasoning: "GOOGL's estimated profit for retail research over the next 5 years will cover this ~ 5X."

The Amazon Echo and Google Home speakers are the first and second most popular versions of these devices currently in the United States, where they occupy a place in millions of homes. New data from research firm IHS Markit illustrating smart speaker revenues will reach $ 11.2 billion in three years, almost double the revenue of $ 6.3 billion this year. Similarly, a Morgan Stanley report estimates that voice purchases will rise to $ 44 billion over the next three years.

It should also be noted that these devices are strategic for large technology companies like Amazon. "Access various information and ecommerce resources", according to IHS Markit. And, of course, these are links that allow customers to stay connected to the ecosystem of this device.

Nowak has released his recommendation for Google in part because of the Amazon threat, he notes in his commentary. That there is an existential threat to Google's search activity in the form of a 'vocal shopping growth combined with the expected benefit of the base of installation of AMZN "which, among other things," will reduce GOOGL's visibility on consumer behavior ".

Speakers with something like a YouTube test account that could convert into a paid YouTube subscription could add 6 percent to YouTube's income and pay the cost of Home Mini Gifts.

$ 3.3 billion a small price to pay for a company like Google to counter a threat posed by the likes of Amazon? May be. Colin Morris, director of Adobe Analytics Cloud, said so in a statement earlier this year on the current configuration of the field, which illustrates why Google might consider such a gesture as practical: "The Voice device popularity proves to be a credible first challenge to be touched as the main interface for consumer electronics. "