Pretty sure each of the companies selling smart home systems like this want to become the dominant go to system, so focusing on earning profits doesn't make much sense. You want to lure customers into your ecosystem and for your solution to become so dominant you become a monopoly, or at least so you don't fall behind and let someone else become ubiquitous. I view it as amazon building infrastructure and supporting future endeavors.
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I feel like I see more people using (Google) Assistant and Siri than Alexa, though.
You'd be surprised. Whenever I'm watching webcams, I always hear people call to Alexa. Siri ranks second and I only hear people call Google by accident.
The idea is that people will be willing to pay a recurring fee to use Alexa if it can do more advanced things, like perform multiple commands without the user having to say "Alexa" repeatedly, be more conversational, and manage smart homes more intuitively. Amazon is considering charging $5 to $10 per month for generative AI Alexa,
I don't know if that's worth $5-10/mo. I use Google Nest products at home, mainly to control lights. And yeah it sometimes annoying to be like, "Hey Google do this...Hey Google, do that...Hey Google, do whatever..." But at that point, I usually just use the Google Home app or a specific IoT app. And that's free.
If Amazon started charging for smart-home solutions, they'd essentially be making the case for FOSS solutions like home assistant.
Granted, there will always be a contingent of people who are unwilling to learn how to self-manage that tech, but there are certainly enough people who are willing that they should think twice about heading down that path.
I mostly go "Hey Google..." in the dark, often with my eyes closed, in bed. At this point, there is nothing I can think of that I'd like to pay it to do for me in that situation. Some searches, basic calculations, setting alarms, and music, is all I need.