Can Google Home Prove To Be Smarter Than Amazon’s Echo?

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At its recent annual developer’s conference, Alphabet Inc.’s subsidiary Google (NASDAQ:GOOG) announced a slew of projects building primarily on its artificial intelligence and machine learning technologies.  One of the products announced in this conference was Google Home – a wireless speaker and smart appliance hub directly competing with Amazon’s Echo. While Echo is already in the market and immensely popular with 3 million units already sold, Google Home will not be available till the end of this year.  Amazon does have the first mover’s advantage and Google is playing catch up in this space.  Still, the latter’s expertise in voice recognition and history of making hardware gives it an edge over Amazon. Once Google Home is launched, however, its product differentiation, as well as its pricing will be critical factors for its success.

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Google’s In House Technology Gives It An Edge

Google has vast experience with voice search, personalized tasks, machine learning and natural language processing.  Its voice based assistant “Ok Google” does a very good job of voice recognition in various accents and linking them to several Android based commands such as navigation and search. Amazon bought a voice recognition company to build Alexa, its voice based assistant exclusively for Echo. Google’s experience with “OK Google” puts it in an advantageous position and Google Home is expected to build further on this technology. Based on the features released by the company, Google Home can do several things which Echo cannot, such as controlling a TV through Chromecast, managing the Google calendar, sending a text, etc. Echo also has a long list of features which Google Home currently does not have.  However, given that Google has the expertise in house and is focused on research and innovation in voice recognition and artificial intelligence, its ability to develop new features will likely be better than that of Amazon, which has to rely on other companies or acquisitions to expand its abilities in this area.  Amazon is investing in Echo heavily and integrating it with several other products, making the digital assistant capable of providing several conveniences to the consumer. Google’s progress in this direction will be visible only after Google Home is launched.

The global intelligent virtual assistant market is forecast to reach $5.1 billion by 2022 at a CAGR (compounded annual growth rate) of 31.8% between 2015 and 2022. Competition  will continue to be intense in  this market.  Apple is looking to increase the market share of its  Siri and Apple TV.  Amazon, in turn, is focused on making Echo more advanced through innovation; it is also seeking its integration with other devices. Google Home does have some advantages as an established player with  strong technological expertise and a track record of releasing similar products.  That said the features and pricing will be the critical factor in determining the ultimate success of the product.

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