Gene Munster: With HomePod mini, Apple lands a punch in the smart speaker market

Apple on Tuesday unveiled HomePod mini, the newest addition to the HomePod family that delivers impressive sound, the intelligence of Siri to get things done, and a smart home experience that offers comfort and convenience without complexity. At just 3.3 inches tall, HomePod mini is packed with innovative technologies and advanced software that together enable computational audio to deliver breakthrough audio quality wherever it is placed. HomePod mini will be available in white and space gray for $99.

HomePod mini, the newest addition to the HomePod family, stands at 3.3 inches tall and offers impressive sound, the intelligence of Siri, and smart home capabilities.
HomePod mini, the newest addition to the HomePod family, stands at 3.3 inches tall and offers impressive sound, the intelligence of Siri, and smart home capabilities.

Gene Munster for Loup Ventures:

HomePod mini features custom hardware, including the Apple S5 chip, and advanced software to deliver breakthrough sound using computational audio.
HomePod mini features custom hardware, including the Apple S5 chip, and advanced software to deliver breakthrough sound using computational audio.
Finally, Apple landed a punch in the smart speaker market. The previous $299 HomePod was stuck with sub 5% US smart speaker market share, generating about $1B in revenue (about 0.3% of total sales) per year. At $99, the new HomePod mini means Apple wants a piece of this market, and the new price should be a catalyst for the company to expand its US share to about 10% in the next couple years. Despite that market share growth, the business will still be sub 1% of total revenue.

The importance of the HomePod mini goes beyond a price point and a product line because it illustrates something unique to Apple: its ability to seamlessly integrate hardware, software, and services. This has been a longstanding strategy for the company and is an example why investors should rethink the multiple on AAPL shares. We believe this integration is unique, defensible, and justification for a higher multiple compared to its big tech companions.

Two HomePod examples of integration include the ability to use your iPhone as a display for HomePod mini, along with Intercom features which connect iPhone, iPad, CarPlay, and HomePod as a messaging system.

MacDailyNews Take: HomePod mini is an affordable entry into the HomePod ecosystem for many who were reluctant to take the leap with the higher-priced HomePod and is an easy, low-priced addition for existing HomePod owners for other rooms in their homes and offices.


  1. This is not a hardware or cost issue, it’s Siri (stupid). If Siri and Apple’s algorithms worked the way we all expected when the original HomePod was rolled out, we wouldn’t be here having this discussion. But that premium price was hard to chew when the value Siri provided wasn’t there.

    Now we have a mini me version of HomePod, well the price is great, but it’s also Apple admitting they messed up, without actually saying it. SirI just hasn’t improved enough to change my experience based perceptions.

    A. Turning on when not invoked.

    B. Hearing me 25 ft. away around a corner, but not when I’m standing right next to it.

    C. Serving up some unknown artist remake of the top 40 song I requested, instead of the real deal.

    $99 has got people excited only because it’s finally pricing matching it’s actual value.

  2. I like the intercom feature of the new HomePod mini and the price seems reasonable enough. Of course, if Siri is still considered stupid by critics, then there isn’t much point in calling it a smart speaker. It’s really a shame if Apple isn’t able to improve Siri when other companies are able to improve their smart assistants. How big a gap in that type of tech could their be? You would think it would be tech Apple could acquire by buying a company or two.

    I don’t use smart voice assistants, so I don’t know much about this sort of stuff. I always type all my requests for knowledge.

    1. Agreed by far Siri is the worst voice assistant. Although it has improved over the years it’s just white doesn’t match Alexa or Google for that matter both are certainly superior. I have four HomePods stereo paired and during football games for some reason Siri must think it hears hey Siri and starts talking shit . Ridiculously I start start talking back shut up. Apple needs to pick up the pace significantly.

  3. I have 2 Homepods..lots of macs..ipads..iphones..
    Still not a fan of them..over rated..Airtunes whatever its called now is temperamental, switching source devices hangs them up. Siri the home..stinky useless.. wish this stuff was reliable as advertised

  4. I have two homepods paired as a stereo pair. I mostly use them to play music and for that they work really well. I use Siri on them a fair amount and mostly it works really well. Siri – get temperature, humidity, sports scores and miscellaneous facts.

    Independent tests show Siri works well for its intended purpose. Sometimes testers ask Siri things that they know it wasn’t programmed to do.

    I’m interested in seeing how they implement voice recognition. They didn’t mention that part.

    1. Please do share what Siri’s „intended purpose” is supposed to be? It has been a decade and Siri is still in beta! Recent „updates” have even screwed up basic things that used to work flawlessly like „rewind 30 seconds” for an Audible book, now it sets a timer half the time! I don’t expect Siri to get any better, this is Apple’s albatross.

  5. I love my two original HomePods that I have set up in stereo. Love them! Lots of compliments on their sound when people hear them first time.

    Siri works find. Only issue is they do t always find my playlist. I’ve followed Apple’s instructions to solve this issue with no positive results. Easy work around but it should just work right. Overall, I love them. I’m an old guy and have been listening to music since the 50’s and have spent lots of $$$ on Stereo equipment over the decades. More $$ than I’d want to admit to. For the price point, it’s very difficult beating the original HomePod for sound quality. If the mini HomePod delivers nearly as well then Apple has a major disruptive product for the lower price point music speaker line.

  6. We should all chip in to buy one for AppelStupenyc, because such a device would regularly remind him that there is a synonym for AppleStupenyc, and that synonym is doofus.

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