Dash device is an exemplar of a service in the same way that a Kindle device is. Amazon retains the option to later go the other way too, but while the constraint is still on the supply side (limited markets) this device serves to fix the service as a thing and generate publicity.
Also, the platform is controlled by Amazon. Free from interference by Apple, Google, OEM or carrier. Wifi and internet aside, all support issues will be standard and coming back to the same place.
For a mass-market voice UI device with no screen, at this stage in the game, voice recognition has to be best in class. I doubt Amazon could have managed this through a plethora of mobile devices. And they would not want their commercial voice data to be processed on Apple's or Google's servers via OS services.
I expect a tear-down will show that some of the parts used are, for now, relatively expensive, but at volume, this device can become a give-away / throw-away.
For what it's worth I doubt this video shows the whole story. Almost undoubtedly Amazon will batch your list up and email you a confirmation before it actually charges for and ships out the order, at which point you will be able to rectify errors in speech recognition or barcode misreadings.
Since Amazon seems to be specifically targeting parents with this ad, we might as well also mention that children will certainly find the Dash amusing with its beeping and red lights, and if Amazon automatically ordered everything your kid scanned for personal amusement, they'd have a lot of angry customers.
EDIT: On second watch, the ad does say "you can check out on Amazon Fresh or a smart phone", so they've explicitly indicated that there will be a confirmation process before the order is placed. This is just meant to make it quick to collect your list instead of having to type in "chocolate chips" and scroll through hundreds to find the brand you like and then repeat for every item in pantry.
Levelling up against Costco and Walmart in really innovative way. Amazon had to have a "USP" other than "we will deliver stuff to your door steps". Now not only "you save the trip to the store, but also you get convenience of making your shopping list anytime, anywhere". Smart strategy that would be hard for traditional competitors like Wal-Mart to copy.
noting that a $299/year Amazon fresh subscription is required to play, this thing probably amortizes itself and then some pretty quickly. (Increases frequency of orders, increases number of things ordered, likely to increase retention of users ie length of subscription.)
What subscription are you referring to? If you spend $300 a month you get the big radish program which gives you lower minimums for delivery, but other than that there's no subscription program afaik.
Edited: I guess in the bay area it's a subscription program. In Seattle there's no subscription so I was confused.
"Amazon Prime Fresh members get the benefits of both Amazon Prime and AmazonFresh for an annual membership fee of $299. Prime Fresh membership is currently available only in the Southern California and San Francisco, CA Metro areas."
Dash device is an exemplar of a service in the same way that a Kindle device is. Amazon retains the option to later go the other way too, but while the constraint is still on the supply side (limited markets) this device serves to fix the service as a thing and generate publicity.
Also, the platform is controlled by Amazon. Free from interference by Apple, Google, OEM or carrier. Wifi and internet aside, all support issues will be standard and coming back to the same place.
For a mass-market voice UI device with no screen, at this stage in the game, voice recognition has to be best in class. I doubt Amazon could have managed this through a plethora of mobile devices. And they would not want their commercial voice data to be processed on Apple's or Google's servers via OS services.
I expect a tear-down will show that some of the parts used are, for now, relatively expensive, but at volume, this device can become a give-away / throw-away.