Alphabet Inc (NASDAQ:GOOG) Launches Competitor To Amazon (AMZN)’s Echo, But Will It Make A Difference?

Alphabet Inc (NASDAQ:GOOG)’s Google took the opportunity at its annual IO conference to unveil a host of new products. But most of those products won’t be available immediately until later this year or sometime in 2017. One such product is the smart speaker aptly named Home, which is a direct competitor to, Inc. (NASDAQ:AMZN)’s Echo speaker.

Google also announced a new kid on the mobile messaging block – Allo, which will take on Facebook Inc (NASDAQ:FB)’s WhatsApp and all the other famous and not-so-famous messaging apps in the world today.

But the question on every investor’s and analyst’s lip is whether Alphabet Inc (NASDAQ:GOOG)’s Google is late to the party with an Assistant and a texting app. The fact that Alphabet launches impressive products that fail to strike the right chord with consumers is also a matter of concern for many analysts and investors. Google Glass is a famous example of a solution that came looking for a problem but couldn’t find a serious one. Google had to pull Glass from the market because consumers could just figure out why they needed the device.

Home vs. Echo

The smart speaker Home is Alphabet Inc (NASDAQ:GOOG)’s answer to Amazon’s Echo. But unlike the Echo, Home is capable of processing multiple queries at ago. For example, when you ask Home how tall is Steph Curry and then follow it up with another question of what his jersey number is, Home will quickly figure out whom you are talking and then deliver more relevant and accurate results.

Amazon’s Echo, which uses Alexa voice assistant, can only handle a single query at a time. Therefore, on the basis of multiple queries processing, Alphabet’s Home takes the trophy. But the question is how long can it keep it?

Amazon has been adding new features to Echo and multi-query support could be one of the features it is planning to introduce in the future. If Amazon quickly makes such a move, it would significantly dilute Alphabet’s Home even before it comes to market. The other challenge for Alphabet in the Assistant space is that Amazon’s Echo is already widely popular. As such, there will be much heavy-lifting work for the Google to do to displace Echo in homes that already have it.

Can Allo displace WhatsApp on your phone?

As for Allo, the room for messaging apps is already crowded and it will be interesting to see who Alphabet dismantles the competition.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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