Apple’s HomePod Places Sixth in Global Smart Speaker Market in Q4 2019

[MacRumors]

Apple shipped an estimated 2.6 million HomePods during the fourth quarter of 2019, earning it 4.7 percent of the smart speaker market, according to new estimates shared today by Strategy Analytics.

Apple was the number six worldwide smart speaker market vendor, shipping fewer speakers than Amazon, Google, Baidu, Alibaba, and Xiaomi.

Amazon was the number one smart speaker vendor in the world during Q4 2019, shipping an estimated 15.8 million speakers for 28.3 percent market share. Google came in second with 13.9 million speakers shipped and 24.9 percent market share, followed by Chinese brands Baidu, Alibaba, and Xiaomi.

Apple shipped one million more HomePods in Q4 2019 than it did in Q4 2018 when it shipped 1.6 million, marking a 65 percent increase in growth. That didn't translate to a major increase in market share though as Apple ships so many fewer speakers than other brands.

The overall smart speaker market was up 44.7 percent with 55.7 million total shipments, up from the 38.5 million shipped in the fourth quarter of 2018.

Strategy Analytics says that it expects 2020 to be another record year for smart speaker sales despite the disruption to supply and demand caused by the coronavirus.

There's no word on whether Apple will be able to increase speaker shipments in 2020, as Strategy Analytics says consumers are drawn to low prices.

"Consumer appetite for smart speakers remained undimmed during the all-important Q4 period as newly launched devices with improved feature sets and audio performance helped drive record quarterly shipments. Consumers across the world were once again enticed by scarcely believable deals from leading brands such as Google, Amazon, Baidu and Alibaba, while Google in particular stepped up its giveaway promotional activity in partnership with brands such as YouTube and Spotify."

Apple's HomePod is priced at $299 in the United States and is available in a limited number of countries. Apple is rumored to be working on a lower-cost version of the HomePod that will be released at some point in 2020, so that could potentially boost sales depending on whether its price point can match some of the much cheaper speakers offered by other vendors.

Another smart speaker sales report recently suggested that Amazon will hold on to its position as the number one smart speaker vendor through at least 2021.

Article Link: Apple's HomePod Places Sixth in Global Smart Speaker Market in Q4 2019

 

[bobmans]

Would be interesting to see their share of total smart speakers profits. I'm willing to bet they're taking home at least 20% of total smart speaker profits with only a 5% market share.

 

[Trik]

I remember when the iPhone wasn't quite as popular, and they'd release the "profitability" metrics. Apple would sell millions fewer iPhones, but make a ton more money. I wonder if that is the case here for HomePod. Sadly Apple chooses not to divulge the revenue from that part of their product line. But I suspect if Amazon is selling Alexa devices for $.50 with an Amazon music subscription, Apple is making a ton more.
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Would be interesting to see their share of total smart speakers profits. I'm willing to bet they're taking home at least 20% of total smart speaker profits with only a 5% market share.

Haha Jinx!

 

[DinkThifferent]

I would love to have two but they are not sold here in The Netherlands, and the Euro prices are always much higher than the dollar price anyway. In Germany a Homepod costs 329 euro ($356) .

 

[xyz01]

I remember when the iPhone wasn't quite as popular, and they'd release the "profitability" metrics. Apple would sell millions fewer iPhones, but make a ton more money. I wonder if that is the case here for HomePod. Sadly Apple chooses not to divulge the revenue from that part of their product line. But I suspect if Amazon is selling Alexa devices for $.50 with an Amazon music subscription, Apple is making a ton more.

Profit is measured differently. Apple is a hardware company and earns their money on the speakers, for Amazon the speaker is just a means to an end: Other sales.

 

[jarman92]

Why do people continue writing this story as if it means anything? The cheapest (only) HomePod costs more than 10x the cheapest speaker from Amazon and Google; no **** Apple won't sell as many. And the HomePod isn't really a "smart" speaker, mostly because Siri is still shockingly useless compared with Assistant and Alexa.

That being said, I have a HomePod and it blows the Echo, Home, and even Sonos One out of the water when it comes to sound quality.

 

[Arcus]

Why do people continue writing this story as if it means anything? The cheapest (only) HomePod costs more than 10x the cheapest speaker from Amazon and Google; no **** Apple won't sell as many. And the HomePod isn't really a "smart" speaker, mostly because Siri is still shockingly useless compared with Assistant and Alexa.

That being said, I have a HomePod and it blows the Echo, Home, and even Sonos One out of the water when it comes to sound quality.

Agreed. Plus I got both of my google devices for free. The big one and the little one. If I didnt get these for free I would have bought a home pod.

 

[dazz87]

shocking.........6th? Price and Siri has nothing to do with it?

 

[ersan191]

That's an ouchie.
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Would be interesting to see their share of total smart speakers profits. I'm willing to bet they're taking home at least 20% of total smart speaker profits with only a 5% market share.

From everything published I've seen the HomePod isn't actually that profitable to make. Especially after the price drop.

 

[ahhh]

Maybe try giving value with functioning AI?
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Agreed. Plus I got both of my google devices for free. The big one and the little one. If I didnt get these for free I would have bought a home pod.

Why?! Amazon Echo works when you talk to it. Siri does not.

 

[Analog Kid]

It’s a shame that this product isn‘t doing better. I love the sound of them, and I won’t let a Google or Amazon microphone into my home. Still, the product line feels kind of abandoned. Even if I don’t see a need to replace mine, it helps to know that the product line is getting love. I rarely use Siri, and I don’t think my life is much worse without a voice assistant. I am slowly building up a functioning smart home. If I had one complaint, it’s that as good as they sound it’s really hard to use them as stereo pair— they’re really picky about where I can stream music from over AirPlay.

 

[Neepman]

Their smart speaker is way overpriced. So where is the surprise?

 

[PickUrPoison]

$3 billion a year run rate isn’t the failure some would like to claim it is. A good YoY growth rate too.

Amazon and google (and others) selling for $20 or less and they can only manage a market share of 5 to 6 times that of Apple, which sells for $300? That’s the real story here.

 

[Stevez67]

That's an ouchie.
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From everything published I've seen the HomePod isn't actually that profitable to make. Especially after the price drop.

When Google and Amazon give their devices away or charge a nominal fee, HomePod doesn't have to be enormously profitable to reap a much higher share of profits from smart speaker sales.

 

[Hodar1]

Speakers, typically are not a 1 size fits all proposition.
That's why most receivers have the capability to adjust the EQ, depending upon personal tastes, source material, and the room. I wish the HomePod would allow me to do some BASIC EQ adjustments - what works fine for music, or as a speakerphone; does not work well with all TV/Movies from the paired AppleTV. The vocals sound distorted, and it's simply "not as good" as using my built-in TV speakers.

And that, completely defeats the reason why I shelled out the money to buy this "audiophile" speaker. I wanted to listen to my movies/tv and music on something that played everything well. Apple needs to re-think how the HomePod limits the user's ability to adjust the HomePod, to the Source Material.

 

[coolfactor]

Two years from now, this will be a very different situation. Apple will either be at the top of the list or not on the list at all.

 

[HVDynamo]

Speakers, typically are not a 1 size fits all proposition.
That's why most receivers have the capability to adjust the EQ, depending upon personal tastes, source material, and the room. I wish the HomePod would allow me to do some BASIC EQ adjustments - what works fine for music, or as a speakerphone; does not work well with all TV/Movies from the paired AppleTV. The vocals sound distorted, and it's simply "not as good" as using my built-in TV speakers.

And that, completely defeats the reason why I shelled out the money to buy this "audiophile" speaker. I wanted to listen to my movies/tv and music on something that played everything well. Apple needs to re-think how the HomePod limits the user's ability to adjust the HomePod, to the Source Material.

They also need to add in a line in port or something. When they eventually stop supporting it, I want it to still function as a powered speaker. If they did that, I would probably buy one for the bedroom or something.

 

[coolfactor]

Their smart speaker is way overpriced. So where is the surprise?

Not overpriced for the sheer quality of the technology and build. It's a high-end speaker with the best microphone array of them all. Just because it's not a low-cost device in a market filled with bottom-feeders doesn't mean it's overpriced itself.
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Why do people continue writing this story as if it means anything? The cheapest (only) HomePod costs more than 10x the cheapest speaker from Amazon and Google; no sh*t Apple won't sell as many. And the HomePod isn't really a "smart" speaker, mostly because Siri is still shockingly useless compared with Assistant and Alexa.

That being said, I have a HomePod and it blows the Echo, Home, and even Sonos One out of the water when it comes to sound quality.

It's not just the built-in assistant that makes a device "smart". HomePod is smart in that it automatically detects the shape and size of the room, and optimizes the sound output to match... without the user having to do anything. That's smart tech.

 

[nitramluap]

If you want to sacrifice privacy for improved 'smarts', then this comes as no surprise. Google & Amazon 'smart' speakers are practically given away for free because both companies know where the real value of these devices lie, and most people are too stupid to care (until it becomes a problem).
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I was in a hotel the other day, talking to my wife, when some Alexa device started replying to us. Needless to say I pulled out its power cord. They're basically listening devices to help improve sales for Amazon (and Google with their offerings).

 

[Agit21]

4,7% market share LOL

 

[brinary001]

I would love to have two but they are not sold here in The Netherlands, and the Euro prices are always much higher than the dollar price anyway. In Germany a Homepod costs 329 euro ($356) .

As an American, I often forget just how lucky we are when it comes to getting stuff first and, when the rest of the world does get it, it's almost always more expensive.

 

[GustavPicora]

They should have leave it in the "Others" category ... . still I may be getting one some day.

 

[ddtmm]

I would put Sonos above Apple in the speaker category. Hands down.

 

[Pootie Tang]

4,7% market share LOL

$1,443,485,110,000 market capitalization LOL

 

[Glockworkorange]

I don't care. I love my HomePods.