During the holiday period, Echo Dot smart speaker by Amazon was the best-selling product on the website, and the main reason for it was the decreased price of the same by Amazon, i.e. $30 rather than $50. Hence, Amazon sold millions of its units. On the other hand, Google also sold its Home Mini speaker for just $30 and even gave away the product to some of the Pixel 2 buyers for free.
However, according to the research of ABI Research analysts, both of these companies lost big money while selling the mini speakers for lower price. This was because the Amazon’s Echo Dot itself costs around $31 for only its parts. On the other hand, the cost of Homo Mini itself is $26.
However, these speakers are only a tool by the companies to enhance their reputation and attract the customers. This tactic of lowering the price of home speakers was also to attract the customers towards themselves before Apple jumps in with its own like product. Hence, the reason for aggressive pricing for mini speakers by both Amazon and Google was to ensure that the larger customer base is attracted towards Echo Dot and Home Mini.