Published Date : Jan 24, 2018
Apple has announced 9th February as the release date for its smart speaker called ‘HomePod’. With the introduction of HomePod, Apple would be in a race for market share against its corrivals, Amazon and Google. It would be interesting to see the strategy adopted by Apple to differentiate the HomePod from Amazon’s Echo and Google’s Speaker Assistant. The market for smart speakers has been captured by the existing models, and HomePod would have meagre room to thrive. However, Apple has had a history of arriving late into the market, yet conquering a greater market share than rivals. To exemplify, Apple’s Mac, iPhone, and the Apple watch entered the market in a scenario of cut-throat competition from other products. Despite their late entry, these products by Apple have made an unrivalled niche in the market.
Key Dynamics Playing Against HomePod’s Success
The presence of a large number of products in the market is anticipated to be an obstacle to the growth of HomePod’s market. Amazon and Google already have five and three different products respectively for smart speakers, which shows the low penetrable space for Apple’s HomePod. The price set by Apple for its smart speaker is relatively higher than the existing products in the market, which is expected to discourage a large chunk of customers from buying them. The intractable music streaming options on HomePod also reflects its downside as against other products.
Despite the odds against Apple’s newbie in the smart speaker market, it would be interesting to see the course that the market takes post HomePod’s introduction.