Consumer Intelligence Research Partners today released results from its research on smart speakers, including Echo from Amazon.com, Inc., Google Home from Alphabet, and HomePod from Apple.
CIRP analysis indicates based on early market penetration, and how Apple sells Apple TV, at least approaching competitor pricing seems necessary.
Apple HomePod has a 6% share of the US installed base of smart speakers (as of June 30, 2018). Across the market, consumers migrated to the lowest-priced models. For the two biggest competitors, Echo Dot accounts for over half of the Amazon Echo installed base, and Home mini is about 40% of the Google Home installed base.
Because of this shift, Amazon and Google have not only sold more total smart speakers, they have also encouraged individual consumers to own more units and integrate their respective platforms into their households. About one-third of Echo and Home users own more than one unit (Chart 1).
“Apple famously prices above, and sometimes far above, similar products,” said Josh Lowitz, Partner and Co-Founder of CIRP, in a statement. “In this case, HomePod costs much more than available Amazon Echo and Google Home models. With low-priced entry-level models, Amazon and Google clearly seek to become the operating system of choice and capture customers for the long-term. Can Apple capture homes with only a high-end smart speaker, and ignore competitors? Last week Apple announced software improvements to the single HomePod model, features that Echo and Home added months ago, but there is little time for Apple to release a competitive model for Christmas 2018.”
For comparison, CIRP analyzed Apple’s other home device, its Apple TV media player. Among Apple customers, almost two-thirds have a media player, compared to the one- third have a smart speaker. For Apple customers that own a media player, Apple TV is the third most popular brand, capturing 20% of that group (Chart 2).
“The streaming media player market is at least as competitive as the smart speaker market,” said Mike Levin, Partner and Co-Founder of CIRP. “After starting high, Apple now offers Apple TV models priced closer to competitors than it prices HomePod. With this pricing, Apple did penetrate its customer base. In contrast, the more expensive HomePod has barely done so. Only 2% of Apple customers have a HomePod as of the June 2018 quarter, with Amazon Echo and Google Home having far greater shares.”
CIRP bases its findings on its quarterly surveys of Apple customers and smart speaker buyers, for the five quarters ending June 2018.
Source: Consumer Intelligence Research Partners, LLC
MacDailyNews Take: Due to its delayed late start this year, Apple’s HomePod is a story for this Christmas and beyond.
A finally-finished HomePod (with flawless multi-room audio and stereo pairing out of the box) and, potentially others in the HomePod family, are products for Christmas 2018 and beyond. — MacDailyNews, April 13, 2018
SEE ALSO:
Despite missing last Christmas by a mile, Apple gains a foothold in the smart speaker market – August 14, 2018
Metro UK reviews Apple’s HomePod: Get the credit card out and buy two – August 6, 2018
How to group HomePod and Sonos speakers for multi-speaker surround sound – July 27, 2018
Yes, two Apple HomePods really are better than one – July 19, 2018
iMore reviews Apple’s HomePod: Retina for your ears – June 18, 2018
Can a pair of Apple’s HomePods take on a surround sound theater system? – June 18, 2018
David Pogue reviews Apple HomePod with stereo and multi-room capabilities: ‘Ooh, man’ – June 13, 2018
HomePod stereo pairing took a frustratingly long time to arrive, but it was worth the wait – May 30, 2018
Strategy Analytics: Apple shipped 600,000 HomePods in Q1 for 6% share of smart speaker market – May 17, 2018
The Inquirer reviews Apple’s HomePod: ‘Looks great, sounds fantastic; Siri needs work’ – April 6, 2018
I want another Apple HomePod for sure, maybe two more – March 20, 2018
Sound quality shootout: Apple HomePod vs. two Sonos Ones – March 16, 2018
Apple HomePod: The audiophile perspective plus 8 1/2 hours of measurements; HomePod is 100% an audiophile-grade speaker – February 12, 2018
Apple’s HomePod is actually a steal at $349 – January 26, 2018
Digital Trends previews Apple’s HomePod: Impressive sound coupled with strong privacy – January 26, 2018
Hands on with Apple’s HomePod: Attractive, ultra-high-quality speaker, an excellent Siri ambassador – January 26, 2018
Apple’s HomePod, the iPod for your home – January 25, 2018
One hour with Apple’s new HomePod smart speaker – January 25, 2018
I have two. Who has the other three?
Cook
No surround sound decoding, use for movies sucks, so of course no one wants a $350 music player, and definitely not a $700 stereo for music.
Devin Prater Assistive Technology Instructor certified by World Services for the Blind JAWS certified
>
Yeah man!
Everyone is in movie theatre mode in real life!
Surround sound?!?!? That 5.1, 6.1, 7.1 thing? Get to know your stuff bro. You just can merge with credibility 5,6,7 channels into 1. There is always a mono version or a stereo version available… And no such thing as Surround’s got a better sound. Surround is for surround… There hasn’t been surround anywhere but in your living room and theatre… Anyway! Keep on trolling!
Your trolling stinks.
Agreed!! I have two and they are nothing spectacular. They need to work with Tv’s not only with Apple TV. The sound good but there is much better out there for less money.
I still have plenty of other solutions in place to take care of my audio needs. Homepod is last and then some on the list of Apple wants.
They’re handling of this has been atrocious. They should’ve had a new version and a smaller, cheaper model by now.
I want AirPlay2 Stereo, nothing else.
No interest in XY music streaming, nor YZ homeSpy. I will check out 2 HomePods somewhere, then I’ll know if it’s better than an equally priced Sonos Amp (2019) with the passive speakers I already own.
Wanted one of these for a recent cruise ship trip to the British Isles. However, because it relies exclusively on AirPlay/Wi-Fi, we decided against it, not being able to count on the ship’s public wi-fi system for speed and reliability. Instead, took our Bose Soundlink with its good ol’ Bluetooth connection. Worked great. IMHO, until Apple incorporates Bluetooth, this exclusively Apple-product family will stay away from the HomePod, large OR small. And that breaks our heart.
I have 4 home pods. One in the kitchen, bathroom, living room and bedroom. Awesome devices, I can’t live without them now. Worth every penny I paid for them.
And yes, Siri works great. He controls my lights, plays music, podcasts, weather, etc. and he does it very well. The australian male accent is a refreshing change from the usual annoying female voice on Echo.
Well I have two HomePods. Perfectly happy with them. I have a home theater system for the occasional surround sound needs. But, I keep going back to the HomePod for my music listening. Excellent fidelity. And my wife could never figure out my receiver setting for music, so she absolutely loves the ease of the HomePod. She just tells Siri what she wants to play. You know, happy wife, happy life…
$350 for something that does less then an amazon echo might be a clue why only 2% bought it.
Exactly right — overpriced and underwhelming. Just relying on the Apple name has gone the way of the dinosaurs under Cook …
I have five. My wife takes one from the stereo pair in the living room to the kitchen or other uncovered rooms…I might need to get a few more.
I recently bought my second HomePod after stereo pairing became available. The reviews stating that two are much better than one — increased volume plus the stereo separation — the reviews are correct! I have both in my living room, at opposite corners. They sound great, no question there. The biggest advantage to the HomePod for me is the instant access to music, both Apple Music and my own music library. Yes, I still use iPods in my cars or to play music through the vintage 1970s / 1980s stereo system in my basement. My wife never bothered to play music on the stereo, CDs, iPods or otherwise. Now, however, through the HomePods she not only plays her music of choice, but also has started using Siri for setting timers, etc.
Myself, thirty years ago I was keenly interested in home automation; now, not so much anymore. I can take Siri or leave it. However, for instant gratification in playing whatever musical selection that happens to come to mind — managed by voice control only to boot — I’m very satisfied with the stereo HomePods/Siri combination!
The sound quality is great, but my HomePod is stuck in my office while an Echo lives on my kitchen counter since it can actually control things in my house such as TV’s, HT receivers, AC Thermostats, smart wall switches, my garage doors, my front door lock etc etc..
When it can play radio channels on demand I’m in.