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RetailRetail

Temu targets Amazon Fire TV streaming gadgets with $4 remote

By
Spencer Soper
Spencer Soper
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Spencer Soper
Spencer Soper
and
Bloomberg
Bloomberg
Down Arrow Button Icon
October 8, 2024, 11:20 AM ET
The Temu logo is displayed on a smartphone screen and on a computer screen.
Temu is selling Alexa-activated remote controls that are compatible with Amazon’s Fire TV Stick for as little as $4.

Temu, locked in a fierce rivalry with Amazon.com Inc., is targeting one of the e-commerce giant’s most popular product lines: the Fire TV streaming device.

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Temu is selling Alexa-activated remote controls that are compatible with Amazon’s Fire TV Stick for as little as $4. Similar generic versions cost about $10 on Amazon.com, while the official Fire TV replacement is about $25. 

Since emerging in 2022, Temu has challenged Amazon’s speedy delivery guarantees by offering steep discounts to shoppers willing to wait about a week to receive their orders.

The knock-off Fire TV remotes are selling briskly, according to Temu’s site, which gave the “best seller” badge to one product described as a “replacement Alexa Voice Remote Control” that’s compatible with Fire TV streaming devices.

Temu shoppers purchased more than 75,000 units of the product, which had a 4.6-star rating from thousands of reviews. Many of the reviewers said the replacement looked exactly like the remotes that came with their Amazon streaming devices. The devices are provided by a China-based company called “Cilcone,” according to the website. 

“I was skeptical that this would work, but for the cost was willing to try,” one review dated Aug. 16 states. “All I had to do was put batteries in, follow the instructions and within 30 seconds it was controlling my Fire Cube and TV.”

It’s unclear whether Temu plans to carry other Fire TV-related gadgetry.

“The products are sold by our third-party independent sellers,” a Temu spokesperson said in a statement. “Similar products are widely available across various online marketplaces.”

An Amazon spokesperson said the company is investigating the situation.

Temu parent PDD Holdings Inc. In August spooked investors after warning that revenue growth will slow as it battles rivals chasing China’s budget-conscious consumers. Challenges at home are making PDD more dependent on overseas markets like the US, where Temu is setting up its own delivery operation and actively wooing Amazon sellers. 

About 35% of all streaming media devices used in the US are made by Amazon, putting it No. 2 behind Roku, according to Parks Associates, a market research firm based in Addison, Texas. Amazon launched the Fire TV line of media players a decade ago and they’ve become the company’s best-selling products. Their remotes feature a button that directs viewers to Amazon’s video streaming service, which helped it develop that business as well.

Amazon has long been criticized for hurting its brand partners by creating generic versions of their products and undercutting them on price. The Seattle-based company has launched its own batteries, clothing, luggage, home goods and more. Amazon has favored its own products in search results over those sold by competitors, which violates antitrust rules, the Federal Trade Commission alleged in a lawsuit against the company last year.

Four-dollar remotes could similarly undermine Amazon’s Fire TV business, especially if Chinese factories start churning out other generic accessories. Some shoppers will take a gamble on the Temu remote to save money even if it’s just a few dollars, said Rob Volpe, a consumer behavior expert in San Francisco.

“Historically, the distribution channel for a brand is one of the key indicators to consumers of the premium nature or value of something,” he said. “To see Amazon products show up on Temu looks a little weird and out of place, but I would say it isn’t hurting the brand.”

(Updates with Temu comment in seventh paragraph.)

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