Amazon
AMZN
unveiled the mesh Wi-Fi systems, namely eero Pro 6E and eero 6+, in a bid to expand its Wi-Fi device offerings.
Notably, both routers are based on the latest technology, which makes them ideal for providing reliable connectivity throughout a smart home.
eero Pro 6E, which marks the first Wi-Fi 6E-enabled eero mesh wifi system, supports network speeds up to 2.3 Gbps, gigabit+ wifi speeds across the house, and 100 devices simultaneously. Further, it enables fast connectivity for activities like AR, VR and 8K streaming.
Meanwhile, eero 6+ supports more than 75 simultaneously connected devices. It also offers access to the 160 MHz radio channel for quick wireless connectivity.
Amazon strives to deliver an enhanced user experience via its new routers, which feature the Zigbee smart home hub.
The huge coverage provided by the routers is likely to bolster their adoption rate in the near term.
An eero Pro 6E gives coverage of up to 2,000 square feet. Further, its two-pack and three-pack cover up to 4,000 and 6,000 square feet, respectively.
Meanwhile, eero 6+ covers up to 1,500 square feet. Its two-pack and three-pack give coverage of up to 3,000 and 4,500 square feet, respectively.
We note that the latest move expands the company’s eero family.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart
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Amazon.com, Inc. Quote
Competition Likely to Intensify
Increasing Internet use globally, along with a growing proliferation of connected and smart home devices, will continue to drive the demand for home internet routers.
The new routers are likely to help Amazon in expanding its footprint in the booming home residential router market.
Per a report from Mordor Intelligence, the global market for residential routers is anticipated to witness a CAGR of 7.12% between 2021 and 2026.
Given the upbeat scenario, competition in the home router space is intensifying. Not only Amazon but also
Alphabet
’s
GOOGL
division Google is making strong efforts to capitalize on the rising demand for home routers, owing to the increasing adoption of smart home devices and the growing momentum across smart homes.
Notably, the search giant entered the market in late 2016 with Google Wifi, which is similar to eero’s home Wi-Fi product. Its Nest Wi-Fi, which is a successor of Google Wi-Fi, delivers Internet across the house and, most importantly, it supports Google Assistant.
The assistant allows users to control and set up the new router from the Google Home smartphone app, with new voice commands created especially for these devices.
Nevertheless, the expansion of the eero family is likely to provide a competitive edge against Google.
Strengthening Smart Home Product Portfolio
Notably, the latest move bodes well for Amazon’s strong focus toward expanding its smart home product portfolio.
The all-new mesh Wi-Fi routers, eero Pro 6 and eero 6, connect Zigbee devices like smart lights, locks, plugs and other compatible devices directly to users’ eero network on the back of the built-in Zigbee smart home hub.
Apart from the latest launches, the portfolio contains several other products such as Echo smart speaker, voice-controlled microwave, Fire TV and Key by Amazon product lines.
The company added a smart video doorbell and home security camera to its portfolio by acquiring companies called Ring and Blink, respectively.
We believe that it will continue to reap benefits from the potential smart home market with the help of its strengthening smart home product offerings.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider better-ranked stocks like
Arrow Electronics
ARW
and
Analog Devices
ADI
. The companies carry a Zacks Rank #2 (Buy) at present. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arrow Electronics has gained 22.7% in the past year. The long-term earnings growth rate for ARW is currently projected at 3.1%.
Analog Devices has gained 9.5% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.3%.
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