ABI Teardown Shows 'Significant Cost Reductions' in Second-Gen Echo Dot

Amazon instituted “significant cost reductions” in the Echo Dot speaker design as it looked to bring voice command functionality to mainstream consumers, said a Tuesday ABI Research teardown report. ABI said the second-generation Dot is a lower-cost gateway than the “economically-priced” first-generation model, moving from a Texas Instruments chipset to one supplied by MediaTek. The first-gen Dot, $89.99, had a bill of materials (BOM) of $45.39, said analyst Jim Mielke, compared with the $49.99 second-gen Dot with a $34.87 BOM. But Smart speaker maker Fabriq, with an Alexa-equipped product retailing for the same price as the Dot, could be “the dark horse to watch,” said Mielke. The Fabriq speaker, based on a MediaTek chipset, works in battery mode as a Bluetooth speaker for remote music streaming, using a cellular device to connect to the internet. As a comparable Echo alternative, “Fabriq may just give Amazon a run for its money,” said Mielke. Google Home, with a $129 price point, has an estimated BOM of $43.44, said ABI. Google Home offers higher-end audio, Mielke said, saying it’s not clear whether Google will enter the sub-$50 voice command market.