Amazon customers are losing interest in Alexa devices and have concerns over privacy breaches, according to new internal documents from the ecommerce giant.
The retailer has anticipated a slump in sales of Alexa smart speakers and research reveals that many go unused, Bloomberg reports, citing planning documents it has obtained from Amazon.
The majority of Alexa users are said to only use the device for basic uses such as setting timers or playing music and do not make use of the more advanced features Amazon has introduced in recent years.
In fact, approximately 15% of new Alexa users no longer use the assistant in their second week of owning it, according to the internal documents. Privacy concerns are also part of the problem according to the documents, as in 2019 it was revealed that recordings of users voices were reviewed by humans to check for errors.
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In 2020, an Amazon analysis predicted that sales of the devices would rise by just 1.2% over the next few years, with the market having “passed its growth phase”.
The company has invested billions in the Alexa devices and released many new versions over the years, with previous ones frequently sold on Black Friday.
Amazon said many of the claims made in the documents obtained by Bloomberg were incorrect and outdated.
“The fact is that Alexa continues to grow – we see increases in customer usage, and Alexa is used in more households around the world than ever before.” a spokesperson told Bloomberg.
The news comes as Amazon was recently criticised by trade union GMB for a “shameful” number of serious injuries across its UK sites.