Amazon makes progress in the race for smart home supremacy

Amazon has a leading position in the smart home market and as such, the company has been able to influence consumer patterns at home via the development of smart living experiences. Determined to gain ground in this industry and beat the competition, the company continues to invest in the expansion of its end-to-end market strategy, focusing on the development of its product portfolio with innovative solutions.  

Amazon rolls out Sidewalk
Amazon has launched Sidewalk, a new service designed to share internet bandwidth among its customers. The low-bandwidth shared network relies on Echo speakers/displays and Ring cameras to share a small portion of the user’s internet bandwidth with other compatible smart devices in the neighborhood. The main purpose is to improve user experience by enhancing the performance of nearby smart devices and their ability to stay connected to the Wi-Fi. There aren’t many Sidewalk-enabled third-party devices at the moment, but Amazon is already working with device makers such as CareBand, Level, and Tile to help their devices benefit from better connectivity via Amazon Sidewalk. These companies are running pilot programs in the areas of well-being and security, with solutions such as assisted-living tracking devices and smart locks.

In early June 2021, Amazon automatically opted users in across the US. Not surprisingly, this approach has encouraged a backlash campaign from critics and privacy advocates that are now trying to teach users how to opt out from Amazon Sidewalk. The company insists that Sidewalk has been designed with multiple security layers to secure data and that it is easy to opt out in the Alexa app. However, Amazon should know what is at stake by automatically opting all users in. The consequences of any potential security breach could be catastrophic for the company’s reputation. Also, and despite the altruism of sharing internet bandwidth with your neighbors, Amazon is automatically benefiting from the broadband service its customers are paying for out of their own pockets. Consequently, Omdia believes this market approach has in a way outshined the benefits of Sidewalk, at least temporarily.  

Amazon expands its Echo Show smart displays strategy
Amazon has updated it smart display lineup with the release of new versions of the Echo Show 8 ($130), Echo Show 5 ($85), and introduction of a new Echo Show 5 Kids Edition ($95). Like the Echo Show 10, the Echo Show 8 has a new 13-megapixel wide-angle camera that incorporates digital pan and zoom capabilities, although with a stationary screen. In the case of the Echo Show 5, Amazon has decided to upgrade the front-facing HD camera with twice the resolution. These improvements are a direct response to the significant shift in video calling due to COVID-19 social distancing and a clear attempt to boost the video conferencing user experience. Amazon has also enabled the possibility for these smart displays to double as home security cameras, similar to the Echo Show 10, allowing users to check what’s going on at home when they are away. The inclusion of this feature expands Amazon’s smart displays value proposition as home security devices and tie them closer to the security product portfolio.     

Finally, it is surprising to see it took Amazon so long to release the all-new Echo Show 5 Kids Edition considering the company has had a dedicated proposition for children via the Echo Dot Kids Edition and the Fire Kids tablets for a long time. As it could be expected from any of the kid-friendly products, the new smart display for children comes with a two-year product guarantee and a free one-year subscription to Amazon Kids+ to tempt children and parents with dedicated entertainment and educational content.

Get a roundup of key events in the smart home market from April 2021 in the full Key Trends from the Smart Home Market – April 2021. This report is an example of one of the many surveys, market forecasts, reports, and market data insights that make up the Smart Home Intelligence Service from Omdia. 

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