Amazon buys robotic vacuum maker iRobot for $1 billion

New York City: Amazon announced this week that it had purchased robotic vacuum maker iRobot for $1.7 billion.

The purchase appears to be part of Amazon's strategy to acquire smart home appliance companies.

Some are concerned about Amazon's market power.

iRobot is best known for its circular-shaped robot Roomba vacuum. As part of Amazon, it will join voice assistant Alexa, the Astro robot and Ring security cameras, along with other home smart appliances.

Industry observers believe that Amazon wants to become more involved in consumers' lives beyond static products, such as voice control.

The newest Roomba vacuum cleaner uses sensors to map and remember a floor plan. Some believe that Amazon could collect data from users of the vacuum to integrate with its other products.

Last year, Amazon introduced its $1,000 Astro robot, though its sales have not been widely successful.

It has been noted that similar robotic vacuums are sold by Chinese and South Koreans for less cost.

In its most recent report, iRobot reported that its quarterly revenues fell 30 percent, mainly due to reductions in orders and delays, as the company laid off 10 percent of its staff.

After Amazon bought iRobot shares, the shares of the company went up 19 percent.

Amazon announced last month that it would purchase primary care provider One Medical, in a deal valued at $3.9 billion, as Amazon moves further into the health care field.