Amazon (AMZN) Senior Vice President David Limp Interview

Amazon (AMZN) Senior Vice President David Limp explained their hardware strategy

“What we’re trying to do is build a business model where we sell our hardware side of the products effectively at cost.  We think that aligns ourselves very well with customers.  If a customer buys a product, doesn’t like it and puts it in a drawer, we shouldn’t profit from that.  If customers use it, over time, we should take a small portion in each transaction of profit.”

Amazon (AMZN) Senior Vice President David Limp talked about the goal with the Alexa Echo device

“The goal long term is not to have you put Alexa in a specific mode, we want it to be conversational.  To do that, it’s going to take a long time.  We have to give it a sense of a short term memory and long term memory.  And we have to give it the ability to understand context and we have to understand who you are versus who your wife is.  It is not an unsolvable computer science problem and the team is working hard on getting us there.”

 

 

Source: Fortune Interview July 13, 2016 https://www.youtube.com/watch?v=zle7iBvcw7I