Amazon has long been accused of undercutting its rivals with its Echo Smart speakers, allegedly preventing competitors like Sonos from gaining a foothold in the market – but Amazon CEO Jeff Bezos says his full retail On the price, the company is not taking the loss.
Today during the big antitrust hearing where Apple CEO Tim Cook, Google CEO Sundar Pichai and Facebook CEO Mark Zuckerberg are also facing questions from lawmakers, Remy. Jamie Ruskin (D-MD) has asked a question about this Amazon. Cost down. This is likely referring to the principle of predatory pricing where a company tries to get its competitors out of business by selling products at a loss, something Amazon has been specifically accused of doing with Diaper.com .
Bezos of Amazon responded that at “its list price”, the company is not losing money on the Echo, suggesting that it is either breaking or making a profit. But he also acknowledged that “sometimes when it’s on promotion it can be below cost, yes.”
This is important, as Amazon’s Echo devices almost always seem to be on sale. Camelcamelcamel.com, which tracks Amazon’s price history for a wide variety of products, suggests that devices such as Amazon’s Echo Dot and Echo Show are often on sale:
I personally recommend people to never buy an Echo at full price, as there is always a $ 40 sale, $ 1 promo, free giveaway, or BOGO deal around the corner.
In 2018, ABI Research estimated that the cost of an Echo Dot is $ 31 for parts alone, suggesting that Amazon may have lost some money at the sale price of $ 30 for sure. The same firm reached a similar conclusion in 2017.