Amazon Customer Echo Owners Appears to Have Plateaued

As we consider how Amazon might try to bring in revenue from the Alexa platform, we look at how Amazon has succeeded in selling Echo devices, the primary driver of Alexa usage. Last week we started to look at how Alexa is used and what an AI-enabled premium version might look like. This week we explore growth in Echo ownership since its market penetration became measurable. 

We see Echo’s penetration in the Amazon customer base has plateaued in the past few years. The most recent data shows that in the US, one-quarter of Amazon customers own one or more Echo devices, across models (Chart 1).