Amazon has suffered a setback after it announced that it was halting sales of the Echo, the personal assistant that lets you order items from a range of retailers and online.
Amazon said in a statement on Tuesday that it would stop selling the Echo after its first-year sales reached more than 100 million units.
It had sold about 1.2 million units in its first five months of sale.
It is the biggest loss in Amazon’s history.
“We are sorry to announce that we are ending sales of Echo,” Amazon said.
Amazon did not say when it was stopping sales. “
But due to the rapid growth of the market and a continuing increase in the cost of smart home devices, we have decided to discontinue sales of our Echo products.”
Amazon did not say when it was stopping sales.
In 2017, Amazon’s revenue rose by nearly a quarter to $1.26bn (£1.14bn) on $23.6bn in sales.
But the company’s profit fell by 40 per cent to $2.5bn.
The company had forecast it would make about $3.3bn in profit for the year.
Sales rose by 4 per cent in the fourth quarter of 2017.
In its statement, Amazon said the Echo had been a success, but said that more was needed to reach its long-term goals of improving Amazon’s customer experience and making the company more widely available.
The Echo was first released in 2015.
It has since sold more than 30 million units, making it the world’s most popular personal assistant.
Amazon has been hit by a wave of new technology that it says is creating an “unprecedented challenge” for the firm.
In October, the company lost its main rival, Apple, in a court case that pits two rival makers of smart speakers against each other.
Apple has been accused of copying the Amazon Echo.
Apple said in November that it had bought a controlling stake in Echo, but that it expected to keep a minority stake.
Apple’s chief executive Tim Cook said in December that he would retire.
Apple shares have fallen by more than 35 per cent since the start of the year, hitting their lowest level since 2008.
“The smart speaker market is undergoing a fundamental transformation.
And the world is facing an unprecedented challenge,” Cook said.
He also said he would be leaving Apple in 2018.
In September, Amazon announced that the Echo would be replaced by the Amazon Fire TV.
It said it would begin selling the device in December.
“Amazon Echo will soon be coming to Amazon Fire,” the Amazon statement said.
The move was welcomed by consumer groups.
“As we saw with Apple’s announcement, Amazon can build its own devices and still make money,” said John Graham, chief executive of consumer technology company iSmart.
Amazon said it planned to bring the Echo to market next year. “
That’s where we see the Amazon partnership with Apple in a big way.”
Amazon said it planned to bring the Echo to market next year.
“If you’re a Amazon customer, you’ll be able to get it for a low price,” the company said.