Apple was always going to face a long road to success with the HomePod given its price point, but that road seems to be even bumpier than originally thought. Earlier this month, Consumer Intelligence Research Partners reported Apple sold 3 million HomePod units since its launch. However, that number may have been overestimated by a wide margin.
A new report from research firm Strategy Analytics estimates Apple sold 700,000 units during the second quarter of 2018. Adding that to the 600,000 HomePod units it estimates Apple sold during the first quarter of the year when the smart speaker launched, that puts its total sales at 1.3 million, a sum much worse than originally thought.
The big difference in HomePod sales estimates stems from Apple not disclosing sales numbers. Apple just lumps HomePod sales in with “Other Products” that includes the Apple Watch and Apple TV. If it did, we would have a more concrete answer as to the exact sales of the its smart speaker, but since we don’t, it’s a crapshoot and does nothing more than confirm what was already expected: Apple is facing serious competition with the HomePod.
Apple framed the HomePod as a top-of-the-line speaker with Siri, but in a market where the competition is offering low-end speakers with heavy discounts, it makes sense why consumers opt for a Google Home Mini or Amazon Echo Dot instead of a $350 HomePod. This dilemma isn’t exclusive to Apple; Google is suffering a similar issue with its $400 Google Home Max.
Strategy Analytics reports Apple’s market share in the smart speaker market during the second quarter reached 5.9-percent, which is par for the course. It still has a long way to go to catch up to Amazon, which sold 4.8 million Echo units, and Google, which sold 3.2 million Goole Home units.
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