Last week, a Wall Street Journal article detailed how Amazon is losing billions on its line of Alexa-powered smart speakers, because it sold the devices at a loss, but never recouped the money because all of those Echos are being used as glorified egg timers.
Amazon vastly overestimated the Downstream Impact (DSI) of Alexa. The company anticipated that consumers would use Alexa to order products and services through the smart speakers, which would make up the difference between the cost of Echo speakers and the price at which they were sold.
