Amazon’s Alexa Could be a $10 Billion ‘Mega-Hit’ by 2020

Amazon’s voice assistant Alexa – which is installed in its Echo smart speaker – could bring the U.S. e-commerce giant $10 billion of revenues by 2020 and be a “mega-hit”, according to a note published by RBC Capital Markets on Thursday.

The investment bank has dubbed the technology “voice-activated internet (VAI)” and said it represents a “material opportunity” for both Amazon and Google, which has its own technology called Google Assistant.

But many investors are trying to figure out how this technology will make money for these firms. RBC suggest that it could be a huge business for Amazon driven by sales of devices that contain Alexa, voice-driven shopping and platform revenues. The result is that the device sales and shopping could generate $10 billion in total revenue.

RBC said there will be 60 million Alexa devices sold in 2020, bringing the total install base to around 128 million.

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SOURCE: CNBC, Arjun Kharpal