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Amazon’s New Echo Will Come With Major New Features

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Leena Rao
Leena Rao
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Leena Rao
Leena Rao
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May 8, 2017, 6:22 PM ET
Amazon.com Inc. Launches Its Echo Home Assistant In The U.K.
An attendee holds an "Echo" device during the U.K. launch event for the Amazon.com Inc. Echo voice-controlled home assistant speaker in this arranged photograph in London, U.K., on Wednesday, Sept. 14, 2016. The Seattle-based company today announced that its Echo product line will be available in the U.K. and Germany starting in the fall, the first time the gadget will be available outside the U.S. Photographer: Luke MacGregor/Bloomberg via Getty ImagesBloomberg Bloomberg via Getty Images
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Amazon’s Echo home automation device may be getting an upgrade as soon as tomorrow.

A new version of Echo includes a screen and the ability for users to make Internet-based phone calls, according to a Wall Street Journal report on Monday.

Amazon (“AMZN”) debuted the Echo in 2015 as an alternative to using smartphones, tablets, and computers at home. The device allows people to use their voice to get answers to questions, turn on lights, order items like diapers, and request an Uber car pick them up.

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The report confirms rumors over the past few months that Amazon would release a new Echo that would include a seven-inch touch screen and more powerful speakers. In addition to allowing users to make video telephone calls, the new Echo would also be able to answer questions using the screen instead of only being able to respond to them using the voice of Alexa, the virtual assistant the powers the device.

Amazon has reportedly been testing the upgraded Echo internally for the past few months and could start shipping it as early as June. The new Echo is expected to cost more than $200, which puts it above the price of the current Echo, which sells for $180.

Two weeks ago, Amazon debuted a new version of Echo for the fashionista crowd, called the Echo Look, which includes a camera but does not have a screen.

Amazon is expected to expand voice calling services to other versions of the Echo as well.

Amazon is in a battle with fellow technology giants, Apple, Google, and Microsoft, to dominate the home speaker market. Google has the year-old Echo rival, Google Home, while Microsoft has been teasing its voice activated speaker, Invoke, for later this year. Apple is also reportedly working on an Echo rival.

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Microsoft’s new device does not include a screen but will have the ability to make voice calls via Microsoft-owned Skype.

It’s unclear if the new version of Echo will integrate Chime, Amazon’s newly launched cloud-based software that lets users make voice or video calls.

Despite more recent competition, Amazon is still in the lead in terms of market share for home speakers. The e-commerce giant has a 70% share of the emerging voice-controlled speaker market compared to 23.8% for Google, research firm eMarketer said on Monday.

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