Microsoft Corporation (MSFT) Takes on Amazon With Cortana Speaker

Quick: Which tech company would be your pick to pile on the connected home speaker bandwagon? With the surprise success of the Alexa-powered, Inc. (NASDAQ:AMZN) Echo, Alphabet Inc (NASDAQ:GOOGL) joined the fray with Google Home. The spotlight was then on Apple Inc. (NASDAQ:AAPL), but Microsoft Corporation (NASDAQ:MSFT) unexpectedly beat Apple to the punch last week by announcing Cortana on third party hardware.

Microsoft Corporation (MSFT) Takes on Amazon With Cortana Speaker

Source: Microsoft

And the company is already showing off an Amazon Echo competitor, with a video clip of the first Microsoft Cortana speaker, coming in 2017.

Adding another unexpected twist to this plot, the first Microsoft Cortana speaker is being designed by Harman Kardon. If that name rings a bell, it should. Harman Kardon is a premium audio brand that’s part of Harman International Industries (NASDAQ:HAR). And that company was in the news last month because it’s being purchased for $8 billion by Samsung (OTCMKTS:SSNLF).

Microsoft Cortana Speaker

The Amazon Echo has been successful at establishing a prominent spot in the home for AMZN, and made it the hub of many smart homes. This despite the fact that Amazon lacks a smartphone and doesn’t really make any smart devices (other than perhaps the Fire TV). Seemingly out of nowhere, hundreds of third-party smart devices and services now feature Alexa integration because of the Amazon Echo.

Like Amazon, Microsoft has also largely been left behind on the smart home front. Connected devices tend to come with smartphone apps that support Apple’s iOS or Google’s Android. Some are beginning to offer Siri integration and of course a growing number support Alexa — via the Amazon Echo.

Outside of the Xbox, MSFT has a minor footprint in the smart home. But a Microsoft Cortana speaker uses the same approach Amazon took.

It doesn’t matter if no one’s carrying a Windows smartphone if you can get them to buy a speaker that establishes Cortana as their home’s intelligent assistant. Like the Echo, a Microsoft Cortana speaker is then in position to become the de facto smart home’s hub. And it will drive more traffic to Bing — Microsoft’s Google search competitor.

Partnering with Harman Kardon is a smart move on Microsoft’s part. Instead of shouting “me too” along with the Echo and Google Home, MSFT can position its smart speaker as a premium audio solution. The Microsoft Cortana speaker wouldn’t just be an alternative — it would be an upgrade for Echo early adopters.

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