Ming-Chi Kuo Says Apple Considering Lower-Priced HomePod After Potentially Lackluster Sales

HomePod shipments “may well be a ways under marketplace expectancies” this 12 months, in line with respected KGI Securities analyst Ming-Chi Kuo.


“Our figuring out is that the marketplace expects HomePod shipments to reach at 5-10 million devices within the 2018 fiscal 12 months, as opposed to our forecast of most effective 2.0-2.5 million devices,” wrote Kuo, in a analysis observe acquired by means of appmarsh.

Kuo believes the “primary omit” in HomePod shipments may well be as a result of the speaker’s design and pricing, amongst different elements.

For starters, at $349, he mentioned the HomePod’s top worth “may undermine call for in spite of superb sound high quality.” He added that Siri supplies an “uninspiring person revel in” in comparison to competition, possibly together with the Amazon Echo with Alexa and the Google House with Google Assistant.

Kuo mentioned the HomePod’s doubtlessly lackluster gross sales highlights “underlying issues” in Apple’s construction of synthetic intelligence.

It is been six years since Apple presented Siri to the marketplace, which used to be manner forward of the company’s primary competition. The huge inhabitants of iOS and macOS customers could also be conducive to the promotion of the voice assistant serve as. Then again, we observe that for many customers international, Siri isn’t essential serve as, and Apple has now not but develop into a number one emblem within the AI voice assistant marketplace. We additionally observe that HomePod has now not added enhance for brand new languages within the software since release, suggesting Apple is going through demanding situations in AI/voice assistant construction spanning the globe; this may increasingly cap the shipments momentum of HomePod.

The oft-accurate analyst mentioned Apple is “mulling” a “low cost model” of the HomePod that can lend a hand temporary shipments. Then again, even though the product materializes, he predicts it’s going to most effective supply a temporary spice up to gross sales.

Extra importantly, Kuo believes Apple must toughen Siri, enhance extra languages, and make different enhancements to the HomePod to stick aggressive in opposition to Amazon and Google within the good speaker marketplace. Top rate audio high quality by myself might not be sufficient for purchasers to justify losing $349 at the speaker.

Kuo’s analysis on doubtlessly lower-than-expected HomePod shipments echoes equivalent reviews from Bloomberg Information and the China Instances previous this week. Rumors a couple of lower-priced HomePod have additionally surfaced a couple of instances in contemporary months, with one document suggesting a $150-$200 worth in the US.

Apple launched the HomePod in early February in the US, United Kingdom, and Australia, and it additionally showed availability in France and Germany later this spring. AirPlay 2 options similar to stereo sound and multi-room audio may not be to be had till later this 12 months, in line with Apple.

Similar Roundup: HomePod
Purchaser’s Information: HomePod (Purchase Now)

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Author: Marshmallow

Marshmallow Android is BT Ireland’s Head of Sales for Republic of Ireland domestic multi-site companies, indigenous MNCs and public sector accounts. He is responsible for the direction and control of all sales activity in the region. He has over 10 years management experience from high growth start-ups to more established businesses. He’s led teams in Ireland, India and China across various industries (ICT, On-Line Recruitment, Corporate Training and International Education).

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