Amazon has often been accused of sell the smart speakers of the Echo line at a loss with the aim of reducing competition and placing itself in an advantageous position on the market. However, CEO Jeff Bezos denied the theory at the hearing in the American Congress.
In response to a specific question from Republican Senator Jamie Raskin, Bezos replied that “at the list price, the company does not sell the Echoes at a loss”, suggesting that it could also make a profit or go even. However, the CEO stressed that “sometimes when they are on sale it could happen“to go at a loss.
A study published by ABI Research in 2018 estimated a production cost for Echo Dot of about 31 Dollars, which started the rumors about the alleged loss-making sale, since in the USA the Seattle giant offers it to users at the price of 30 Dollars.
Even in Italy, however, Amazon is used to offer offers and discounts on Echoes, which are often also offered at ultra-convenient prices 50% lower than those in the list.