This product is part of Amazon's "Day One" program, which is largely stuff that they're throwing against the (shopping) wall to see if it sticks. It's like the Alexa Microwave...a shitty microwave that was intended as a reference design that became the best-selling microwave on Amazon.
Amazon is testing the waters for Alexa-integrated wearables. Not just earbuds, which are a saturated market, but other wearables like rings and frames.
If it does, the potential upside is huge--they could create an entire new market, like they did with the original Echo and Kindle. If not, it's a rounding error in an immaterial account on the financials.
I think it's more that Amazon has so much money that their version of market research looks much different than what you typically think of as market research.
Producing a new device, throwing it up on their website to sell, and seeing how well it does is Amazon's version of market research. It's "move fast and break things" brought into the hardware space. They actually even say as much in their description of the "Day 1 Editions" program, of which the Echo Loop is part of.
The "move fast and break things" motto doesn't mean actually "breaking" things. It means not being afraid of mistakes, because things that are "broken" or "wrong" can be fixed down the line.
In this case, Amazon is exhibiting not being afraid of releasing a possibly unsuccessful product, because they know they can iterate on it (or pivot, or exit entirely) later on.
Remember the failed phone? Half of these new echo devices likely will suffer the same fate. I can’t imagine wanting to speak to my hand or my glasses in public... looking completely insane while doing it.
Amazon is testing the waters for Alexa-integrated wearables. Not just earbuds, which are a saturated market, but other wearables like rings and frames.
If it does, the potential upside is huge--they could create an entire new market, like they did with the original Echo and Kindle. If not, it's a rounding error in an immaterial account on the financials.