Walmart’s latest earnings results revealed several troubling shifts in consumer behavior. For one, wealthy shoppers are trading down, and the retailer’s growth isn’t coming from traditional budget-conscious customers but from households earning more than $100,000 a year. 

Another worrisome trend recently noticed is a massive move to online shopping, with Walmart seeing “outsized growth” in e-commerce, which grew by 24% globally in 2025. You can find more details in my last article here. 

As inflation and economic pressure tighten household budgets, consumers are moving away from shopping at multiple retailers and are instead choosing just one destination for their needs. According to a recent report from PYMNTS on discretionary spending declines Amazon and Walmart are now directly competing for the same shopper.  

While Amazon remains the king of “wants” (discretionary spending) and Walmart dominates “needs” (groceries), the retail giant is fighting back with heavy AI investments and a focus on local products, according to a report from Bloomberg. 

“It’s an effort to capture that impulse spend from shoppers who are already in-store picking up their necessities, effectively snatching up the discretionary dollars that might otherwise be spent at Amazon,” highlighted TheStreet’s retail reporter Madison Troyer. 

Now, Walmart is doubling down on this rivalry with a bold new piece of budget-friendly hardware. 

Walmart’s is quietly working on a new smart Gemini speaker  

A new smart speaker from Walmart’s Onn brand was recently discovered through an early listing on a certification website, reported Android Authority. 

What happened is that a Reddit user reported seeing Walmart’s unreleased Onn Smart Speaker listed on the Connectivity Standards Alliance (CSA) website. CSA is a consortium of companies that helps create and implement universal open standards, such as Matter, for IoT devices. 

While the page has since been removed, showing a “404: Page Not Found” sign, several outlets reported about the device. 

The device is unique as it is one of the first speakers from a company other than Google to use the new Gemini AI instead of the older Google Assistant, highlights Android Authority. By shifting from the traditional Google Assistant, the speaker will potentially provide smarter conversational abilities and better home integration. 

“Manufactured by Shenzhen SEI Robotics Co., Ltd., the device is designed to deliver voice-controlled entertainment, smart home management, and wireless audio streaming without the higher costs typically associated with premium brands,” writes Cord Cutters News. 

Walmart’s new smart speaker features 

The speaker is designed with a focus on both utility and security. It features:

• Manual privacy: A physical “kill switch” allows users to completely turn off the microphone for peace of mind.
• Simple controls: The top of the device includes physical buttons for volume and playback, along with LED lights to show when it’s active.
• Smart home control: It uses a new technology standard called Matter, which allows it to easily talk to other smart devices like light bulbs, thermostats, and security cameras, regardless of who made them.
• Audio power: It is listed as a 10-watt speaker with a “far-field” microphone, which helps it hear voice commands even from across a room.
• Simple Setup: It supports Wi-Fi, Bluetooth, and Google Cast, making it easy to stream music or podcasts directly from your phone.
  Sources: Android Authority, Cord Cutters News 

Although Walmart hasn’t officially announced the product yet, the fact that it has appeared in official certification records means a release is likely coming soon. It may arrive on store shelves alongside Walmart’s other updated streaming devices.

What this means for Walmart 

Walmart’s move into AI-powered smart home hardware could signal another shift in its retail strategy.

By placing a low-cost smart speaker directly in customers’ homes, Walmart can extend its ecosystem beyond physical stores, an area where Amazon has long dominated with devices like Echo.

“With Amazon’s Echo line and Apple’s HomePod anchoring the rest of the category, a low-cost Walmart entry would put a third Gemini-powered option next to Google’s own. Walmart has used the same playbook with Onn.-brand Google TV streaming sticks and televisions, where price-led private-label hardware tied to Google services has expanded shelf space without a marketing campaign,” writes WinBuzzer. 

The adoption of Matter and Gemini suggests Walmart is aligning itself with the next generation of smart home standards, potentially lowering barriers for mainstream adoption.

Moreover, if priced aggressively, the Onn speaker could position Walmart as the one choice for the budget-conscious shopper who doesn’t want to be locked into one brand. 

Related: Walmart closes stores in key growing market, customers concerned