The smart speaker/display race has been heating up quite a bit over the past year, with market leaders Amazon.com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary Google releasing a plethora of new devices. The dueling tech giants are also taking cues from each other, replicating successful products to challenge one another. Google's Home Hub, released late last year and recently rebranded as the Google Nest Hub, was clearly in response to Amazon's larger Echo Show.

Amazon is now countering that response with a smaller, even more affordable Echo Show 5.

Echo Show 5 on a nightstand next to a lamp and a framed photo

Echo Show 5 costs $90 and ships in late June. Image source: Amazon.

Going for small and affordable

The e-commerce giant announced the Echo Show 5 this morning, with the 5 referring to the display size instead of the product generation. The Echo Show 5 does everything you would expect an Alexa-powered smart display to do: play music, control smart-home gadgets, make video calls, and display information like calendar events or weather forecasts.

Echo Show 5 features a 5.5-inch display, 1-megapixel front camera with a built-in shutter, and two microphones. The device's design is similar to the larger version, including a cloth-wrapped aesthetic available in two color options. A dedicated button can turn the camera and microphones on or off for privacy considerations.

One of the new Echo Show 5's most compelling aspects is its price. The smart display will cost just $90 and ship next month. That's cheaper than Amazon's own Echo Spot, as well as Google's Nest Hub, both of which cost $130. Here's how both companies' smart display offerings line up.

Device

Display

Price

Amazon Echo Show 5

5.5 inches

$90

Amazon Echo Spot

2.5 inches (circular)

$130

Google Nest Hub

7 inches

$130

Amazon Echo Show

10.1 inches

$230

Google Nest Hub Max

10 inches

$230

Data sources: Amazon and Google.

Additionally, both companies often run aggressive promotions, particularly as the products age and costs come down over time. Affordability has been absolutely crucial to Amazon and Google dominating the smart speaker/display market.

Amazon is still the market leader

It should be clear by now that Amazon and Google are going to continue pushing forward with more and more devices that can cater to different use cases and address a broad array of price points. In the closely related smart speaker market, Amazon saw unit volumes surge by 85% in the first quarter, according to recent estimates from Canalys. Amazon is currently the top dog globally with 22% market share. Google comes in second place with a 17% share.

The smart display market may be newer, but it's expected to soar in the years ahead in lockstep with smart speaker sales and smart-home technology adoption.