The HomePod entered into the market on February 2018. A large number of experts and analysts expected it to generate a massive number of sales. More specifically, they predicted it to outperform Amazon Echo in the global market. However, things turn out to be pretty different in the first two months. According to the latest Apple HomePod news reports, the device is performing very poorly in the highly competitive market of smart speakers. It is no longer considered as a potential hot seller.
Apple HomePod News: Market Share Declining Rapidly
When HomePod arrived in February, it managed to grab a significant market share of 14 percent. However, after three weeks, it declined massively by 4 percent, as said by Slice Intelligence. On the other hand, Amazon Echo takes over 70 percent market share consistently.
According to unnamed Apple workers, the unsold HomePod units are piling up in the inventory. And if the sale continues to decline, the Cupertino company will be in a huge trouble. In fact, it might trigger one of the major financial losses of the recent time.
But what can be the reason behind the whole situation? Other popular smart speakers, including Amazon Echo and Google Home, can do a lot of things that the typical ones cannot do. For instance, they are able to take your voice command for purchasing foods from the nearby shops. So, all the people expect HomePod to do the same thing. But obviously, it is not capable to do so. As a result, all the consumers are driven away from it.
However, renowned analyst Gene Munster is still optimistic about HomePod getting back on track. He predicts the sales to increase in the holiday season. In fact, it might rise to 7 million in 2018 and almost 11 million in the next year. But looking at the current situation, it is really hard to believe that it will become a reality.
Apple HomePod News: Cupertino Company Rumored to Release a New Model to Boost the Sales
Following the disappointing sales figure, Apple is planning to bring a new model with a significantly cheaper price tag. According to Economic Daily Times, a Chinese website, the Cupertino company will reveal it in the second half of 2018. The device will cost you around $150 – $200, which is almost half of the price of the current generation model ($349).
The cheaper price tag makes a lot of sense. At present, the HomePod is significantly costlier than all the major smart speakers. For instance, you can get Amazon Echo at only $99. But more importantly, you get tons of feature that is not available in the HomePod. In addition, the sound quality is almost the same as Apple’s speaker. So, why would anyone consider to buy HomePod?
Apple is well aware about the whole situation. That’s why, it is desperate to bring a cost-effective smart speaker that can compete against the rivals pretty strongly. However, the company will definitely have to cut off some key features to make the new model more budget friendly. But it’s really hard to predict right now.
However, Apple is definitely not going to do it at the expense of sound quality. In fact, the company might tout it as a key feature, along with the budget friendly price tag, to drive the consumers away from Amazon Echo and Google Home.
We will continue to publish all the latest and the most buzzing Apple HomePod news stories. So, do not forget to check our website regularly.