FIRST AIRED: January 27, 2017

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Transcript

00:00:01
>> Apple may be the reigning gadget champ, but it's facing a fierce battle with e-commerce giant Amazon, who's got a surprise winner on its hands, the Echo. One analyst estimating 10 million of them were sold in the latest holiday season alone. And now, many smart home Appliance makers are rushing to hookup with Echo's
00:00:20
>> Alexa, turn on the lights.>> Digital butler, Alexa. That's raising questions about where Siri is in this race to turn on our lights, lock the doors, and keep the house warm. But Reuter's Steven Nellis says Amazon has its own challenges. So the big risk with Alexa and controlling devices around the home like a thermostat, is the integration's not that tight.
00:00:40
You gotta buy the device, you gotta download the app, set it up. And then go into the Alexa app and then set it up there. And then you can tell Alexa to turn the heat up.>> Still, Alexa stole the CES show earlier this month at the world's biggest tech gadget show, she showed up in LG's refrigerator, Ford's car, and in China's major smartphone maker, Huawei's latest phone.
00:01:00
She can control over 250 home gadgets today. For Alexa, smart home companies just need to write code and submit that to Amazon for a review. Getting in bed with the iPhone, not so easy. That's why Apple has less than half the number of things that work with its HomeKit system compared with Amazon.
00:01:18
Gadget makers have to jump through many more hoops with Apple, from including special chips that work with Apple system sending the products to Cupertino where Apple test them extensively for compatibility. But that means they'll work out of the box.>> The contest between Alexa and Siri is basically a classic case of open versus close ecosystems in Silicon Valley.
00:01:39
The game is far from over between Siri and Alexa. Siri's been out for years, Alexa is much newer but we've just seen the very tip of iceberg in terms of what you're gonna be able to do by talking to computers around your house.>> One thing apple does have going for it, a billion IOS users if you haven't noticed while you updated your iPhone to IOS 10.
00:01:58
Look now there's already an Apple home app on your phone.