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Amazon buys Eero as a key to smart home market – Axios



Amazon Purchase of Hardware Startup Eero is not difficult to explain: The company's smart home ambitions rely on fast and reliable Wi-Fi throughout the home, and Eero's mesh routers help deliver it.

Why is it important: ] Amazon puts all pieces together for a comprehensive smart home system, with Alexa voice presiding over constellations of Echo speakers, Blink home security systems and Ring smart doorbells.

  • ICYMI: Amazon spent about $ 1 billion last year to acquire Ring.
  • The home provider himself could prove a useful integration point for Alexa or other services.

Our thought bubble: This is not just a strategic step for Amazon, it's good time for Eero to give up trying to do it alone in the increasingly competitive network hardware market.

  • The company had hoped to move to subscription services, such as security, but it was always a tough way to make money for ac ompany, which started off with a major hardware problem.

The Big Picture : Although this agreement alone will not increase significant antitrust study, it is another example of Amazon expanding its reach to new areas. [19659006] Some Eero customers expressed dissatisfaction that the details of their home network setups previously underway on a small startup could be used for wider purposes by Amazon.

  • The company said in a tweet that "it does not track customers' internet activity, and this policy will not change upon the acquisition."
  • History Lesson : Amazon has previously invested in Eero-rival Luma, even though its Alexa Fund.

    What they say:

    • Quartz Mike Murphy : " My parents' house has @geteero, @ring and @amazonecho in it. They have a Prime account and shop for Whole Foods for occasional occasions. Jeff Bezos is controlling the suburbs now. "
    • The Verge's Dieter Bohn :" I'm glad Eero gets more resources, but I is loved by having at least one important gadget in my life, not made by Apple / Google / Amazon / Microsoft or trapped in their ecosystems. "

    Bottom line : Whatever Amazon paid (and that doesn't say) It profits not only by selling Eero's network equipment, but also by giving customers

    Going deeper: A truly smart home should be more than just connected


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