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I think the Echo devices are included, so it means hardware sold. Not sure they were being sold at a profit.

Also, you need to count the server costs, including machine learning training and inference.



For a while Amazon loved selling the smaller units for a little as a dollar (and often including several months of Amazon music for free or almost free as well).

Sell enough of these 30 dollar gadgets for a dollar and it will add up quickly.


The Echo devices were sold for around BOM, but IIRC they were able to get some significant price reductions on that on a few popular devices, though I'm not sure if that ever got released. I think some of the newer devices might have turned a profit (not including R&D costs though).


Also, people are expensive, and it takes them to design and program this stuff.




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