Amazon hits the brakes! The Astro commercial robot project failed, fully betting on the home robot market

According to the financial news app Zhitong Finance, Amazon (AMZN.US) announced that it will terminate its Astro for Business program for small and medium-sized enterprises, less than a year after the launch of this robot security product. In an internal email, the company revealed that this decision will allow Amazon to focus more on the development of the home version of Astro.

In an email to customers, Amazon explained that the Astro for Business robot will cease services on September 25th and encouraged customers to return these devices. As compensation, business customers will receive a full refund and an additional $300 credit to support them in finding alternative solutions in the workplace. Additionally, they will also receive a refund for any unused Astro Secure subscription fees.

It is understood that the commercial version of Astro for Business robots was launched in November 2023, equipped with high-definition cameras and night vision technology, capable of autonomously patrolling and mapping spaces up to 5000 square feet. These robots can be manually and remotely controlled through the Amazon Astro app, with a starting price of $2350. However, early criticisms pointed out that the security subscription services provided by Amazon and its Ring department were overly complex, with monthly fees as high as $179 for the three-tier subscription service.

An Amazon spokesperson stated that this decision will not affect any positions, and affected employees will transition to the development of consumer robots for home use. Although the company did not disclose how many customers will be affected by this decision, this shift marks Amazon's strategic adjustment in this field, which is expected to see significant expansion in the coming years.

The global market potential for robot security is huge, driven by favorable factors such as labor shortages, cost savings, and technological advancements. In addition to Amazon, companies like Cobalt Robotics, Knightscope, SMP Robotics, as well as departments of large enterprises like Lockheed Martin, Northrop Grumman, and BAE Systems are also competing in this field.

It is worth mentioning that on July 4th, at the 2024 World Artificial Intelligence Conference (WAIC 2024), Tesla (TSLA.US) unveiled its second-generation humanoid robot Optimus. Tesla officials introduced that the second-generation Optimus, in addition to walking upright, has increased walking speed by 30%; its fingers have also "evolved" to not only perceive and touch, but also handle tasks like "handling eggs with ease" and moving heavy objects. Recently, the second-generation Optimus has been "working" at Tesla's factory. With the help of visual neural networks and FSD chips, the second-generation Optimus can mimic human operations and undergo battery sorting training.

Amazon's Vice President of Devices, Lindo St. Angel, stated in an internal email to employees that he still believes robots will bring long-term benefits to Amazon's customers and emphasized that advances in artificial intelligence have brought new opportunities to this field St. Angel wrote: "We increasingly believe that the progress in the field of home robots is where we should focus our resources. To achieve this goal, we have decided to gradually discontinue the Astro for Business program and focus all our efforts on creating the best consumer robot products for homes."

Although the initial version of Astro was launched in 2021 for home users by invitation at a price of $1600, it can still only be purchased by invitation through Amazon's Day1 Editions program. Amazon has not yet announced a timetable for the full opening of Astro to home users, but stated that feedback from Day 1 Editions program customers has guided the development of multiple new features and enhancements.

For Astro for Business customers, there is currently no official option to convert their existing business robots into home robots. However, Amazon encourages customers to utilize its recycling program and has automatically sent invitations to these customers to purchase the home version robot through the Astro Day 1 Editions program.

Amazon also offers three levels of subscription services for Astro for Business customers, including Astro Secure subscription for $60 per month for programming routes and receiving alerts, Ring Protect Pro subscription for $20/month to save video history for up to 180 days, and Virtual Security Guard service for $99/month, allowing manual agents remote access to Astro devices for event investigations. Amazon stated that customers no longer need to pay any subscription fees for Astro Secure from now on and will receive refunds for any unused prepaid subscription fees. For Astro consumer users using the service for home security patrols, Astro Secure will also be discontinued.

As September 25 approaches, Astro for Business devices for enterprise customers will no longer operate, and personal data will be deleted from the devices. Any patrol or investigation videos recorded by Astro will be retained in the customer's Ring app until the video storage time expires or the Ring Protect subscription ends