Amazon is trying to beat its competition by giving its new Echo Buds wireless headsets at a more affordable price than Apple, Google and Samsung, according to internal documents obtained by Insider.
According to the internal documents, the company is primarily targeting shoppers who earn less than $US50,000 annually with the Echo Buds, codenamed Powell.
It’s hardly surprising that Amazon is trying to beat the competition price-wise, but it is interesting to see the specific demographic they’re honing in on for the new headsets.
“The target customer is someone who is new to the true wireless headphone category or is an existing Alexa customer who wants to interact with Alexa while on the go,” the document said, noting that 61% of shoppers are expected to earn less than $US50k.
In addition to those looking to save a quick buck, Amazon is specifically targeting people who aren’t particularly tech-savvy.
“These customers have noticed the popularity of AirPods but have been hesitant to purchase their own because (1) they don’t quite understand the benefits, (2) are turned off by the ID, and/or (3) are not willing to spend over $150 for headphones.”
Amazon is also putting a strong emphasis on customers who are new to the true-wireless market, combining comfort, noise cancellation and a low price to convince people to buy their first pair.
“Powell’s promise of providing convenient access to Alexa while on the go is exciting to them. But it’s the discreet and comfortable design, active noise cancellation with great audio, and Alexa features — all for under $100 — that finally compels these customers to purchase their first true wireless headphone,” it said.
Additionally, Amazon notes the growing list of Alexa functions as a differentiator between the Echo Buds and competitors, with the features allowing you to do voice-activated tasks like checking your calendar.
The documents also revealed the company’s plan in future, with Amazon emphasising a strong focus on size and cost reduction in future audio devices.
“To ensure we continue increasing value for our customers, we are planning our next generation hearable now with a focus on size and cost reduction,” the document said.
The headphones, which were announced on Wednesday, are usually priced at $US119, but will be discounted to $US99 at launch. The Echo Buds are 20% smaller than the previous model, and offer “twice as much” noise cancellation.
The highly-anticipated new Echo Buds were originally due for release late last year, but faced a significant delay, as noted in the internal documents.