NetEase Youdao has launched a smart lamp as learning gadgets have recently become a new area of opportunity for Chinese Edtech companies struggling with the double-cut policy
Youdao Inc (NYSE:DAO), the educational technology unit of Chinese internet giant NetEase, launched Youdao Smart Lamp on the evening of April 7. This is another learning product launched by Youdao after a series of its smart devices gained popularity, such as Dictionary Pen, pocket printer and listening module.
Zhou Feng, CEO of Youdao, said the company has gained extensive experience in the field of smart devices and is confident to make the lamp a flagship product in 2022.
Using AI technology, the Youdao lamp enables the user to look up new words in a fraction of a second and facilitates office study while protecting children’s eyesight, according to the company.
The device, which went on sale on April 7 at CNY1,999 ($314), is part of Youdao’s new line of products and services as it pivots to new revenue streams after the country’s crackdown on the for-profit tutoring since last year.
Youdao’s current main businesses include digital solutions for education and big data services for business-to-business education. The company generates in-depth analytics for students and schools and personalizes learning services by converting assignments into digital format.
During the third quarter 2021 earnings conference call, Youdao executives responded to investor demands that learning devices, STEAM courses, adult education and education digitization solutions are the four essential pillars of Youdao’s future growth.
Therefore, Youdao continued to expand the suite of learning products and launched Youdao Listening Pod at the end of the third quarter as planned, which is a smart gadget making full use of AI technology to train people’s ability more effectively. listening and speaking of the user. Zhou, CEO of Youdao, also said that there was little competition before in the field of smart devices, but this year the competition has become more intense.
According to Youdao’s financial report for the fourth quarter of 2021, net revenue from learning products reached CNY 318 million (USD 49.96 million), up 33.9% from the same period in 2020. This is due to the substantial increase in sales volume of Youdao Dictionary Pen which shipped 500,000. The company believes that smart devices will maintain its revenue growth momentum at a relatively high pace in 2022.
Due to the double reduction policy, aimed at easing the academic load of Chinese students receiving compulsory education, many other Chinese Edtech companies have started to seek new business growth trajectories, such as ByteDance, TAL Education, Zuoyebang (Chinese: 作业帮) and Yuanfudao (Chinese: 猿辅导).