Alibaba Group Holding Ltd., a
Chinese e-commerce company, would launch a product to rival Amazon’s Echo, an
online enabled speaker that reacts to voice commands, according to a report. A
report claims that the Chinese company may just unveil the product by next
week.
Alibaba’s new connected voice
speaker would be available in China and can speak using only Mandarin. It is
being developed by Alibaba’s artificial intelligence research teams in China.
It will be targeted at local consumers who already use Alibaba’s online
services, and is unlikely to be launched in the U.S.
Consumers are likely to be
able to use the product to make purchases from Alibaba’s online platforms using
a voice-activated assistant, in much the similar way as Amazon Echo users can
issue such commands to its Alexa and virtual PA.
Amazon Echo, launched in
2014, is a speaker which one can leave on all day and give voice commands to
it, similar to Siri on an Apple Inc., while Apple and Google have unveiled
products similar to Echo with the HomePod and Google Home.
Though Alibaba is often
dubbed as “The Amazon of China,” Alibaba founder Jack Ma has said that Amazon
is closer to a retailer while Alibaba is more like a small business ecosystem
and told the American companies to be “careful, not afraid”. Still, the two
companies compete in similar areas outside of shopping, including movies,
cloud, groceries and artificial intelligence.
Alibaba shares traded down
over 3% on Thursday afternoon.
On Wednesday, it announced
that it would be increasing its stake in Singapore-based online retailer Lazada
Group from 51% to 83%. Meanwhile, a new research note from JPMorgan forecast
that Alibaba’s shares had a further 32% upside on top of the 60% they have already
returned since New Year. JPMorgan pointed to the increasing rate, which Alibaba
is monetizing its huge trove of consumer data.
Apple HomePod, Google Home, and Amazon Echo are
basically internet-connected speakers which directly stream music from services
like Apple Music, Google Play, and Amazon Prime Music. These speakers come with
built-in digital assistants, which are activated by voice commands. Earlier,
digital assistants were only part of smartphones and with smart homes being the
drive for every major tech firm, these voice -based assistants are now coming
home with smart speakers which talk and respond to requests made.
Alibaba’s smart speaker will also face domestic
competition from similar devices already launched by JD and Baidu. Tencent recently
revealed its own virtual assistant Xiaowei.
Meanwhile, by 7:59 PM GMT-4, Alibaba Group
Holding Ltd., traded 2.18%, or 3.14, to $140.81. It opened in $143.16, with a
session high of $143.56 and a session low of $137.52. Its market capitalization
was 366.80 billion, with a P/E ratio of 56.37.
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Alibaba to Unveil Product Rival to Amazon’s Echo
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