Get ready for some snark! Regular Mac360 readers will know I have a penchant for slicing and dicing the obvious bias of wayward technology writers and guesstimators who pull numbers from their patootie to share with an unsuspecting readership.
I’ve been doing this for about a dozen years and there is just so much new material to chew into that I could call it a never ending job if I got paid for it. As for now, it’s a duty, a responsibility, and a lot of fun to point out such ridiculousness.
Do you own one of Apple’s highly touted and highly expensive HomePods? Of course not. Well, at least 98 of every one hundred Apple customers do not have HomePod. Apple doesn’t reveal actual sales numbers so any numerical consideration for success means we have to enlist the help of professional guesstimators.
Daniel B. Kline is a self acknowledged Fool.
Apple’s Homepod Failure Is a Reflection of Its Bigger Problem
Failure? I saw HomePods in the nearby Apple Store. HomePods own about 25-percent of the talking speaker industry’s revenue.
The tech giant just cut the price on its tepidly selling smart speaker/digital assistant, but the issues run deeper than one device’s uncompetitive price tag.
Apple cut the price tag on the original iPhone, too. iPad, too. Mac, too. Failures? Hardly. Uncompetitive price tag? Name another speaker with similar capabilities for half the price? No, we’re not talking Amazon Echo or Google Home-whatevers. HomePod is different.
Levin & Lowitz writing for CIRP explain the nonsense in deceiving but sensical terms:
Apple HomePod has a 6% share of the US installed base of smart speakers (as of June 30, 2018). Across the market, consumers migrated to the lowest-priced models. For the two biggest competitors, Echo Dot accounts for over half of the Amazon Echo installed base, and Home mini is about 40% of the Google Home installed base.
Shocker. The most expensive product does not have the same marketshare as the least expensive products. Do a little math and you’ll see where HomePod, priced about five times the average selling price of an Alexa Echo or Google Home, probably owns 30-percent of marketshare and at least that much of profit share.
Wait. There’s more.
Only 2% of Apple customers have a HomePod as of the June 2018 quarter, with Amazon Echo and Google Home having far greater shares
Oh. Sorry. My bad.
We’re back to marketshare again? 2-percent cannot be good, right? Well, it depends. CIRP says HomePod has only a 2-percent marketshare of Apple’s own customers. How many is that? Apple says they have about 1.5-billion devices in the wild and a billion customers. Apple may already have sold 20-million HomePods at $350 each (before the recent price cut) that comes in at just $7-billion.
Yes, it’s math, but guesstimates.
I have no doubt that HomePod’s total numbers are well south of my math, but obviously north of math used by Fools.
Homepod closed 2018 with 4.1% market share, according to data from Strategy Analytics, which estimated that Apple shipped 1.6 million smart speakers in the fourth quarter.
That’s a $560-million quarter. Somehow that doesn’t sound all that shabby, but, again, guesstimates, but it just shows to go you that lies, damned lies, and statistics are still a thing decades after Mark Twain bit the dust. Take the numbers from such guesstimators and do the basic math.
HomePod is a big failure in the mind’s eye of those who have a narrative to share, but seems more like a success to Apple. Listen to a HomePod. Then listen to anything else for similar dollars. Apple does not need to compete with the likes of a few dozen million Amazon Echos filled with Alexa because Apple has a billion Siri devices in use already.