Apple’s HomePod dominates with 70% share of premium smart speaker market

According to the latest quarterly research from Strategy Analytics, global smart speaker shipments reached 11.7 million units in Q2 2018. The Google Home Mini was the world’s best-selling smart speaker during the quarter followed closely by Amazon’s Echo Dot. Apple’s HomePod did not feature in the top-five ranking by shipments but it did top the market value rankings with 16% share of wholesale revenues.

David Watkins, Director of Strategy Analytics’ Smart Speaker service commented, “Unsurprisingly, Amazon and Google models dominated the best-selling list of smart speakers in Q2 2018. The Google Home Mini and Amazon Echo Dot accounted for a combined 38% of global shipments although they contributed just 17% towards the value of the market due to their low price. Apple on the other hand has focused its smart speaker efforts at the premium end of the market, promoting the HomePod’s audio prowess ahead of the device’s voice control capabilities. Apple took a 6% share of shipments in Q2 2018 but it is the market leader in terms of revenue with 16% share and holds a dominate 70% share of the small but growing $200+ premium price band.”

Global smart speaker shipments by model, Q218: Source: Strategy Analytics
Source: Strategy Analytics

 
David Mercer, Vice President at Strategy Analytics added, “The number of smart speaker models available worldwide has grown significantly over the last twelve months as vendors look to capitalize on the explosive market growth. Heavyweight brands such as Samsung and Bose are in the process of launching their first models, adding further credibility to the segment and giving consumers more options at the premium-end of the marker. As the range of price points and customer segments expands, understanding the competitive situation and future direction of the smart speaker market by price band has become of critical importance for all interested parties. Strategy Analytics’ world-leading smart speaker service is designed to help companies take a deep-dive into the granular issues of this fast-changing market.”

Source: Strategy Analytics, Inc.

MacDailyNews Take: How much share did HomePod take of the $349+ market? 😉

Kidding aside, this is Apple’s target market and, with HomePod sold on sound quality first (not Siri, thankfully), these are the buyers who are most likely to have the type of disposable income that best facilitates things Apple likes even more than hardware sales: Recurring Apple Music subscriptions.

5 Comments

  1. Hey, first couple years of Apple Watch release wasn’t stellar either. Give it time. A whole new group is working on Siri so we shall see what comes.
    Off topic though, how about that Apple Watch!! 🤑

  2. Some Apple product is always TOO EXPENSIVE so naturally no one will buy it. I think people commenting should always say, “too expensive for me.” Obviously, the HomePod is not too expensive for everyone.

    I’m always curious about how many units of a product Apple expects to sell and whether they hit those targets in most cases. I’m sure Apple doesn’t really expect to outsell Amazon’s Echo devices although apparently some individuals (analysts) think they should. Amazon and Google have their market and Apple has their own market. Which market is most profitable? I can only guess Apple would be making the most profits. How much profit can Amazon eke out of a $39 Echo Dot even if they sell millions of them.

    Anyway, it seems almost every product Apple sells nowadays is considered a failure right off the bat. It may take a couple of years for any Apple product to gain traction in sales as long as they continue to refine it.

    AppleWatch was definitely considered a failure at least for a couple of years. I don’t know if that was actually true but there sure were quite a few sources saying it was an outright failure of a product. I think it’s considered a successful product now but it may still not be seen as a sales success when compared to iPhone sales. Every product Apple sells is automatically compared to the iPhone in terms of sales/revenue and I’m not sure that makes any sense at all.

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