Amazon Echo teardown shows sharp reduction of component costs

U.S. tech giant uses cheaper hardware to grow its Prime ecosystem

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Amazon is primed to make its Echo smart speakers the hub of connectivity for home electrical appliances. (Source images by Amazon and Wataru Ito)

NORIO MATSUMOTO and MASAHARU BAN, Nikkei staff writers

TOKYO -- Nikkei tore down a popular Echo smart speaker from U.S. tech giant Amazon and discovered that the gadget's production cost based on the sum of component costs was $24, about half that of a previous model.

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