HomePod Sales lower than Apple expected

Mark Gurman, writing for Bloomberg:

When Apple Inc.’s HomePod smart speaker went on sale in January, it entered a market pioneered and dominated by Amazon’s Echo lineup of Alexa-powered devices. Apple has been touting the HomePod’s superior sound quality but so far hasn’t enticed many consumers to part with $349.

By late March, Apple had lowered sales forecasts and cut some orders with Inventec Corp., one of the manufacturers that builds the HomePod for Apple, according to a person familiar with the matter.

At first, it looked like the HomePod might be a hit. Pre-orders were strong, and in the last week of January the device grabbed about a third of the U.S. smart speaker market in unit sales, according to data provided to Bloomberg by Slice Intelligence. But by the time HomePods arrived in stores, sales were tanking, says Slice principal analyst Ken Cassar. “Even when people had the ability to hear these things,” he says, “it still didn’t give Apple another spike.”

During the HomePod’s first 10 weeks of sales, it eked out 10 percent of the smart speaker market, compared with 73 percent for Amazon’s Echo devices and 14 percent for the Google Home, according to Slice Intelligence. Three weeks after the launch, weekly HomePod sales slipped to about 4 percent of the smart speaker category on average, the market research firm says. Inventory is piling up, according to Apple store workers, who say some locations are selling fewer than 10 HomePods a day. Apple declined to comment. The shares gained 1.4 percent to $174.89 at 3:36 p.m. in New York.

Roger Stringer spends most of his time solving problems for people, and otherwise occupying himself with being a dad, cooking, speaking, learning, writing, reading, and the overall pursuit of life. He lives in Penticton, BC