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While I agree that the Alexa devices would cost more if they were a normal product, $115 is too high. The Apple HomePod Mini sells for $99 and Apple is known to
by Tagbert 4y ago
While I agree that the Alexa devices would cost more if they were a normal product, $115 is too high. The Apple HomePod Mini sells for $99 and Apple is known to maintain a higher margin (average 35%) on their products than most other manufacturers. Assuming a similar cost for the Alexa (likely cheaper as the HomePod is a better speaker) and a lower margin puts the most likely retail price for an Alexa at around $70-75.
- jqpabc123 4y agoMy $115 was a break even priced based on their units sold and reported losses in their Alexa unit for this year. Adjustments can undoubtedly be made to bring this more inline with what the market will bear but it will almost certainly have to be much higher than $15 to break even.