More Alexa Devices Are Coming – Here's What It Could Mean for the Amazon Stock (AMZN)

Alexa is about to be everywhere.

Amazon is expected to release eight new devices that will extend its voice assistant technology, Alexa, beyond Amazon's existing family of 11 smart speakers, as well as many other Alexa-enabled devices.

Have you ever wanted to heat leftover pasta with your voice? According to a report by CNBC, Amazon (AMZN) plans to introduce an Alexa-compatible microwave, a subwoofer and an automotive gadget.

If it's accurate, the expansion of Alexa would match Amazon's declared ambitions to take the voice assistant to the next level through a combination of internal work and developer development to create new products using Alexa. CEO Jeff Bezos suggested in a July press release that Amazon customers could soon use Alexa "wherever they are".

Bezos also noted that "tens of thousands of developers in more than 150 countries are building new devices using the Alexa voice service, and the number of Alexa-enabled devices has more than tripled in the past year."

Since the launch of the first Echo in 2014, the range of Amazon devices incorporating Alexa, or able to integrate with the voice assistant, has expanded to dozens of Amazon products and to Other manufacturers such as Sonos (SONO). sells a speaker connected to Alexa. Amazon also used external developers as part of an initiative called Alexa Fund, which has allocated $ 200 million to startups specializing in the construction of products using voice technology. Ring, a manufacturer of home security devices purchased by Amazon in April 2018 for an estimated $ 1 billion, was funded in part through this fund.

The proliferation of Alex is just beginning, and is comparable to the beginnings of the Apple iPhone (AAPL), said Professor Scott Galloway, a professor at NY School Stern School, at a conference organized by Recode & # 39; s Code this week.

"The witness has been handed over. [The iPhone] was the most transformative material in the history of humanity; It has literally redistributed trillions of dollars in value to stakeholders, "Galloway said." It has been shifted to the most innovative new feature of the last 10 years that will also redistribute billions of dollars in market capitalization.

Describing the voice as "the technology of the future", Galloway predicted that Alexa's growth will help push Apple beyond Apple, citing not only device sales, but also the effects network such as the trend of Alexa users to spend more. Namely, a survey by Consumer Intelligence Research Partners found that Amazon Echo owners were spending 66% more per year than ordinary Amazon customers, buying an average of about $ 1,700 worth of merchandise, compared with $ 1,000 a year.

If Galloway's projections are accurate, Alexa's growth at home and beyond could result in a growth spurt for Amazon's investors. By comparison: since the introduction of the iPhone in 2007, the value of Apple's shares has risen more than 1100%. IPhone sales account for more than 60% of Apple's business turnover, not to mention the sales of the App Store, another example of a revenue stream intrinsically linked to the flagship device of the company. ; Apple.

Amazon does not publish revenue for Echo devices, but a report by research firm Canalys estimates that Amazon has delivered 2.5 million Echo devices in the first quarter of 2018 and still dominates the speaker market smart in the United States. The Google Home device is catching up in sales.

The introduction of a new class of devices connected to the voice, beyond the classic intelligent speaker of Amazon Echo and Google Home, could exceed 30 billion dollars by 2024, according to a report released by Global Market Insights.

Speaking of Amazon's market capitalization, which recently followed Apple by breaking the trillion dollar mark, Galloway predicted that "Amazon will pass Apple, I believe, from here 60 to 90 days and never looking back."

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