BI Chinese station reported on March 3
According to sources on Friday, the Amazon retail team formally notified Nest in a conference call late last year that the company's website will no longer be available for any of Nest's latest products in the short term. Among Nest's products that Amazon declined to sell include Nest's latest thermostat, home security Nest Secure, among others.
Nest products in the Amazon site's user rating is quite high. According to sources, Amazon said in a conference call at the time that the decision to stop Nest products came from the top of the company, and this had nothing to do with the quality of Nest products. It is reported that, although the Amazon retail team did not specify, but the staff involved in the conference Nest finally reached the corollary - the decision in fact by Amazon CEO Jeff - Bezos (Jeff Bezos) personally made.
According to sources, after Amazon made this decision, Nest decided to stop selling all the products on the Amazon Web site. This also means Nest devices disappear from the Amazon Web site after the inventory of Nest devices on the Amazon website is sold out. Amazon stopped Nest, suggesting further clashes between the company and Google in its calculations.
After missing out on the smartphone boom and limited growth in the tablet market, Amazon is currently investing heavily in Alexa as a computing platform for the next generation. Alexa is not only Amazon's AI assistant, but also a platform for smart home devices. Amazon has lately and frequently launched an offensive against competitors, especially Google. Google is also Amazon's most prominent competitor in the smart home market. Amazon this week also spent $ 1 billion acquisition of the smart doorbell maker Ring, the transaction will allow the company and the Ring team to cooperate on family safety and internal distribution.
In fact, Nest has been warned long before the conference call late last year. At that time, a Google representative, a sister company of Nest, reminded the company in November last year that the news they got from Amazon said Amazon would stop selling Nest's products.
According to sources familiar with Nest's strategy, the reason the company dropped all its products on Amazon's site was because of a desire to sell a full product line on the Amazon Web site or to sell nothing at all. As of now, Nest and Amazon have not commented on this report.
In addition to Nest's products, Amazon has not banned other companies smart home products. Amazon, for example, is currently selling artificial intelligence web-enabled cameras from startup Lighthouse. Products from smart-lock maker August and other vendors are also currently on the Amazon Web site.
War with Google
Nest's sale of Nest's devices was due to the fact that Alexa Voice Assistant and Echo Smart Speaker performed well during the holiday shopping season at the end of last year, giving Amazon even greater ambitions in the smart home device market. The acquisition of Ring last month allowed Amazon to better integrate its devices with Alexa and accelerate its ability to compete with Google's smart home business.
Devices manufactured by Nest include networked cameras, thermostats, smoke detectors and safety systems. Alphabet's predecessor, Alphabet, acquired Nest in 2014 for $ 3.2 billion. When the corporate structure was reorganized in 2015, Alphabet considered Nest a "Other Business" and became a subsidiary with the same legal status as Google. But then Nest experienced product problems and the CEO's departure, Google also raised the degree of emphasis on smart home speakers, smart speakers and Amazon Echo. Google parent company Alphabet made a blog post on February 7 that Nest smart home brands will be re-included into Google's. After returning to Google, Nest's current chief executive, Marwan Fawaz, will report to Rick Osterloh, head of Google's hardware division, and the merger means Google's artificial intelligence Will be like a smart assistant, later more inclined to Nest products.
Through the Alexa and Echo product lines, Amazon now dominates the voice-control computing device market. But Google is struggling to catch up. Google Assistant Voice Assistant and Google Home smart speaker is fast access to market attention.
Amazon accounted for about two-thirds of the US smart speakerphone market by the end of 2017, but the data did not reflect the full sales of the holiday shopping season, and Google's products were more prominent during this period.
Amazon stopped ceasing Google hardware devices such as Google Smartphones and Pixel smartphones before it stopped selling Nest devices. In response, Google's video site YouTube no longer supports Echo Show and Fire TV.
In addition to hardware and applications, Amazon is also strengthening its digital advertising business, which will also pose a threat to Google's core business. In addition, Amazon and Google are also major competitors in cloud computing services.