As one of the most popular gift suggestions for the year (it’s included in practically all published articles providing a list of the best tech gifts for 2016), it comes as no surprise that Amazon’s Echo and Echo Dot are now sold out. Well, not entirely. They’re sold out on Amazon.com, Inc. (NASDAQ:AMZN), but there are still some Echoes and Echo Dots left at Amazon’s brick-and-mortar stores, as well as in some retail outlets like Best Buy and Target. eBay has some stocks left too. But you’ll have to spend a bit more if you choose to get yours from them because they’re selling at a higher price — Echo Black at $379.99 and Echo Dot at $59.98.
If you think the price is too much and you’re in no hurry to get your own Echo or Echo Dot, you can just order now to reserve a unit and simply wait for Amazon.com to replenish their stocks. Amazon Echo will be back in stock in January next year while the Echo Dot will be in stock again after Christmas.
As reported by The Motley Fool, the stock shortage of the Echo devices is not a result of poor supply forecast. Rather, it’s more the result of unexpectedly high customer demand. Which seems quite logical because Amazon would not have marked down the prices of the devices if they weren’t confident that they would be able to meet the demand.
Still, maybe Amazon should have considered a higher stock forecast, especially after its blockbuster sales last Black Friday and Cyber Monday. Apparently, both the Echo and Echo Dot were among the best-selling items during both sales events. And not just in their own category, but among all categories. This should have been an important signal for Amazon to raise their stock level. Or maybe they did increase their supply, but demand was simply too overwhelming and their buffer stock still turned out to be insufficient.
Considering there are now alternative digital assistant options in the market, Amazon better hope that those who initially wanted to have Alexa for their home will not be too disappointed that the Echo devices are currently out of stock, and will still be willing to wait for stock replenishment.
According to information from the Consumer Intelligence Research Partners (CIRP), since Alexa’s introduction in 2014, Amazon has so far sold 5.1 million Amazon Echo devices in America. And the number simply continues to increase as more customers become aware about the product and how effective it is in turning one’s home into a smart home.
Amazon really nailed it with Alexa. But it shouldn’t become too complacent because Google Home is steadily gaining momentum. To maintain its lead in the digital assistant market, Amazon better make sure that this ‘out of stock’ scenario doesn’t happen again.
Amazon Stock Action
Shares of Seattle-based e-commerce giant declined to $766.34 at the close yesterday in New York and have fallen nearly 4 points below the $763 level in early market trading Friday.
Currently there are 33 Wall Street analysts that rate AMZN a ‘Buy’ versus four rating it a ‘Hold’. No analyst rates the issue a ‘Sell’. The $362.37 billion market cap company has a median Street price target of $937.50 with a high target of $1,250.00.