Apple HomePod Estimated To Have 3 Million Sales, 6 Percent Market Share

Apple’s HomePod smart speaker entered the smart speaker race late in the game with Amazon and Google leading the charge. A new report from a research firm claims that the HomePod has seized 6 percent market share in the United States.

In total, the smart speaker installed base in the U.S. is estimated to be 50 million units, which includes the HomePod, Amazon Echo and the Google Home, MacRumors reports citing the Consumer Intelligence Research Partners (CIRP). Apple is estimated to have only sold 3 million HomePod units in the U.S., which account for 6 percent market share. In contrast, the Amazon Echo is leading with 70 percent, while the Google Home is at 24 percent.

Apple has a lot of catching up to do with Amazon and Google, but that was already expected considering that the HomePod was only released this past February. Amazon’s Echo speakers have been around since 2014 and the company has already released different versions of its Alexa-powered smart speaker. Google Home was first released in 2016 and has already spawned the Home Mini and the Home Max.

Apple is also at a disadvantage when it comes to global sales. The HomePod is only officially available in the U.S., the U.K., Australia, Canada, France and Germany. Another thing to consider is that the HomePod is rather expensive when compared to its competitors. The HomePod sells for $349, while the Amazon Echo starts at $50 and the Google Home costs $129.

CIRP co-founder Josh Lowitz believes that Apple will have a difficult time in gaining more market share in the U.S. The only way for Apple to change that is if it releases a new model that will be sold at a more competitive price. Both Google and Amazon are already selling cheaper and smaller smart speakers with the Home Mini and the Echo Dot, respectively.

In March, Chinese sources revealed that Apple was working on a low-cost HomePod which might arrive during the second half of 2018. The report also went on to say that the cheaper model will be smaller than the standard HomePod and it might be sold for around $150 to $200. In May, a sketchy report claimed that Apple’s cheaper HomePod model might be sold under the Beats brand. Apple is also rumored to be working on the device with chip supplier MediaTek, a known supplier of parts for Amazon’s Echo speakers.

Another thing that may be holding down the HomePod might be Siri, Apple’s digital assistant. It has been criticized heavily for its limitations and is even considered as inferior to Amazon Alexa and Google Assistant, as pointed out by AppleInsider. As of now, Siri is only able to stream music from Apple Music, while Alexa and Google Assistant can stream music from more than one service. Streaming Spotify songs on the HomePod is possible, but users will have to use AirPlay instead of using voice commands for Siri.