Apple will sell roughly 3.8 million HomePod smart speakers in 2018, allowing it to grab less than 10 percent of the market share, while rivals Amazon and Google continue to dominate the smart home space, according to research institute Strategy Analytics.
Apple will sell roughly 3.8 million HomePod smart speakers in 2018, allowing it to grab less than 10 percent of the market share, while rivals Amazon and Google continue to dominate the smart home space, according to research institute Strategy Analytics.
After making multiple announcements of shipping delays, Apple finally affirmed its smart speaker will launch on Feb. 9. The iPhone maker hopes its music-centric speaker will be able to make inroads into Amazon and Google’s early market lead.
Even if Apple had managed to launch HomePod in December 2017, the company started a long way behind its competitors. As such, it faces a significant challenge when it comes to taking consumers away from Amazon and Google, Strategy Analytics says.
While history has shown that Apple is capable of achieving considerable success even when entering an already crowded market, there is a growing sentiment that Apple may have entered too late this time to make a significant impact in smart speakers. Siri’s capabilities have fallen well behind those of Amazon’s Alexa and the Google Assistant, the research institute said.
Apple will find it very difficult to persuade existing Amazon Echo or Google Home users to switch to Apple’s Siri-powered HomePod, meaning Apple could face challenges as it establishes presence in the smart home industry. The reason is that owners of Google Home or Amazon Echo are much more likely to buy a secondary product from the same company.
“Amazon and Google are rapidly building their presence in the home thanks to their collaborative and open-source approach,” said David Watkins, director of the new smart speaker service at Strategy Analytics.
“Apple risks either missing out completely on the lucrative connected home market or at best becoming a niche player unless it urgently refocuses investment on improving its AI assistant capabilities and significantly broadens its HomeKit ecosystem,” Watkins added.
Adoption of siri to see highest growth
Usage of Apple’s smart assistant Siri, however, is predicted to grow at the highest rate, compared with voice assistants like Alexa, Google Assistant, Cortana and others (like Xiaowei, DuerOS, Bixby and AliGenie), thanks to Apple’s established market for its smart devices, according to a report released by Reportlinker.
Siri’s main advantage is its virtual surround sound technology and deep integration with Apple’s product line. The company’s strong brand and consumer base are expected to fuel the market for Siri-enabled smart speakers, Reportlinker says.