On this week’s episode of For Your Innovation, we’re talking to ARK analyst Nick Grous about the booming market for smart speakers. In just over four years, devices like Amazon Echo and Google Assistant have gone from niche toys to a mainstream device that’s found in many people’s homes across the world. We have a conversation about why they’ve become popular, the reason why they’re selling at such a low price and how its adoption into the market compares to the smart phone. We also talk about the Amazon Echo and Alexa and why they have not managed to develop a greater variety of apps compared to Apple’s App Store and what developers can do to improve traction. We get into the practical problems that are still being resolved with voice interfaces and its potential for revitalizing the market through interactive music, shopping and connecting home devices.
Key Points From This Episode:
- The high rate of smart speakers’ early phase adoption and the predictions for the next year.
- Why smart speakers are currently selling at such low prices.
- How their growing array of functions will keep increasing their popularity.
- Imagining the different ways in which smart speakers can offer more.
- Why Amazon Echo (Alexa) still has such a small number of apps despite being inexpensive.
- Gaming as an important factor in Apple’s App Store success.
- The differences between a mobile phone application and voice interface.
- The high error rate with voice commands as a significant reason for slow adoption.
- Revitalizing the market through interactive music, convenient shopping and connectivity.
- The fundamental issues with smart speaker technology that needs to be resolved.
- Natural language processing of voice assistants as an area that still needs attention.
- The voice problem in commerce and how it could be overcome.
“To be able to have their voice assistant in the center of your home, answering questions, controlling devices, that’s invaluable to a company like Amazon or Google.” — @GrousARK [0:03:37]
“If you look at three avenues, I think this is what’s going to revitalize the market: music, shopping, and connectivity.” — @GrousARK [0:17:05]
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