In Alexa chase, Google gets set for another run

Google had big plans to show off wares at the Consumers Electronics Show last week, but its grand unveiling got pre-empted by rain -- and outshone by rival Amazon.

The Alphabet Inc. unit set up a sprawling booth -- more like a full-fledged showroom -- at the technology conference in Las Vegas to highlight its products officially for the first time. On opening day, the space was full of Google-branded devices and speakers, TVs from partners and heavy promotions for Google's voice-based Assistant. Then a downpour blanketed the tent, forcing Google to postpone the debut of its digs.

Meantime, inside Amazon.com Inc. was unveiling yet another score for its rival digital assistant, Alexa. The voice interface will be included inside some 2018 Toyota Motor Corp. vehicle dashboards, real estate for which Google is also vying.

But Google's offense didn't end when the show closed. The company is considering the debut of a revamped online retail site in February to sell its own products -- and those from Nest, Alphabet's smart-home gadget unit -- with Google's digital assistant at the center, according to two people familiar with the plans.

As competition has escalated, Amazon has recently removed some Google devices from its store and taken YouTube, Google's video service, off its gadgets. Google is also discussing a strategy for buying products and services via the assistant, said the people, who asked not to be identified.

Ahead of the Consumer Electronics Show, Google said Assistant now runs on 400 million devices -- mostly smartphones powered by Android, the most popular mobile operating system, where it comes as part of the package. But internally, the search engine operator is worried about losing share to Amazon, according to one person briefed by the company. In the smart-speaker market specifically, EMarketer estimates Echo will command a 68 percent share this year, compared with 25 percent for Google Home.

A Google spokesman declined to comment on future plans and market share. Scott Huffman, a Google vice president, said in an interview that Assistant's main focus this year will be spreading further to mobile devices, home gadgets and cars. Huffman's team is also working on closer customizations with longtime Google partners.

Another concern for Google: When device makers think of making money off voice interactions, they're turning to Amazon.

Consider LG Electronics Inc. At the Consumer Electronics Show, the Korean manufacturer introduced a suite of new gadgets and appliances with built-in voice features. With its new TVs, LG is relying on Google, its partner on mobile phones. Its refrigerators, though, will talk with Alexa -- a prime conduit to buying groceries and other items through Amazon.

SundayMonday Business on 01/14/2018

Upcoming Events