Amazon has long been accused of tearing down its rivals with its Echo smart speakers, which allegedly kept competitors like Sonos from finding themselves in the market – but Amazon CEO Jeff Bezos says that with their full retail price, the company is not taking losses on these products.
At the big antitrust hearing where Apple CEO Tim Cook, Google CEO Sundar Pichai and Facebook CEO Mark Zuckerberg are also facing questions from lawmaker, the Rep. Jamie Raskin (D-MD) asked a stated question about whether Amazon was pricing its Echo devices. below cost. This is possibly referring to predatory pricing theory where a company tries to lead its rivals out of business by selling products at a loss, something that Amazon has been specifically accused of, mostly with Diapers.com.
Amazon’s Bezos responded that with its “list price”, the company is not losing money on the Echo, and suggested it is breaking down or making a profit. But he also admitted that “sometimes when you̵7;re on a promotion it can be under cost, yes.”
That’s important, because Amazon Echo devices almost always seem to be for sale. Camelcamelcamel.com, which tracks Amazon’s pricing history for a wide variety of products, suggests that devices like Amazon Echo Dot and Echo Show are sold as often as not:
I personally advise people to never buy Eco at full price because there is always a $ 40 sale, off $ 1 promo, free shipping, or a BOGO deal right around the corner.
In 2018, ABI Research estimated that Echo Dot would cost $ 31 for parts only, suggesting that Amazon definitely lost some money at a typical $ 30 selling price. The same firm came to a similar conclusion in 2017 as well.