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Tech Players Eye Alexa's Growing Market: AMZN, QCOM in Focus

Amazon.com AMZN and microchip giant Qualcomm Inc. QCOM are joining to bring more Alexa-powered wireless headphones, the companies announced earlier this week.

Qualcomm will unravel the industry's first Alexa-enabled bluetooth smart headset reference design that can be used by manufacturers to effectively embed Alexa in the device. When the wireless headset is paired with an Android phone, Alexa can be activated through the Alexa app.

Amazon's initiative to broaden the reach of its voice assistant isn't new in the industry. Apple's AAPL virtual assistant Siri can already be found assisting users through the company's wireless earbuds AirPods.

The recent trend in the industry initiated by Apple brings a couple of related stocks in focus. These companies are hurrying to partner with headset makers to integrate their AI assistants for user convenience.

Need for Superior Audio Quality Driving Demand

The new Alexa-enabled wireless headset feature will enable users to avail Alexa on-the-go without needing to communicate with their phone. The feature is helpful for customers, who use voice-enabled services but seek better audio quality.

The requirement for enhanced sound quality coupled with demand for the availability of a virtual assistant on any device is pushing the industry to ensure the right smart products that come with an AI-enabled voice assistant. Headphones are at the center of this demand because these offer customers accessibility to their virtual assistant anywhere, anytime.

Amazon and Alphabet are already competing to conquer the smart home space with voice-enabled smart household products that could run the house with a single command. The implementation of better-quality, voice assistant-enabled wireless headphones will make managing the smart devices even smoother and more efficient.

Bose and Jabra headsets already feature built-in Alexa, while Sony's headsets will accommodate the voice assistant following a software update, according to a Reuters report. But now other wireless headset manufacturers can use Qualcomm's reference design to make room for Alexa.

The partnership with Amazon could be Qualcomm's move to diversify its products away from modem chips and processors. As more customers hunt for enhanced audio-quality headsets, more headset manufacturers are bound to adopt AI-enabled assistants in smart devices.

How Robust Could the Wireless Headset Market Be?

According to a report by techsciresearch released in April, the global wireless headset market is set to witness strong growth - a compound annual growth rate of over 15% - in the next five years. The segment was valued at $7.65 billion in 2017 and the increasingly advanced technological features in the headsets are pushing the market to expand further.

Some of the key players in the wireless headsets markets include Motorola MSI and Sony SNE .

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Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Motorola Solutions, Inc. (MSI): Free Stock Analysis Report

QUALCOMM Incorporated (QCOM): Free Stock Analysis Report

Sony Corporation (SNE): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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