Analyst: Apple Considers Cheaper HomePod to Increase Sales

KGI Securities analyst Ming-Chi Kuo, who is often right about Apple business, says the company is considering a cheaper version of its HomePod speaker. That should adjust disappointing sales figures.

MacRumors publishes parts of a report by Kuo. It states that a cheaper version will probably only have a short-term effect on the sales figures of the speaker. According to the analyst, the product faces other issues. For example, Apple should focus more on improving Siri and supporting a wider range of languages, among other HomePod improvements. The sound quality alone would not prompt customers to pay a high price for the speaker, which retailed for $349.

The report would also show that the deliveries of the speaker are disappointing. Kuo estimates deliveries of 2 to 2.5 million units in fiscal 2018, while expectations are between 5 and 10 million. Earlier this week, another analyst firm also said deliveries of the HomePod are not meeting Apple’s expectations. The company would therefore have adjusted orders for parts downwards.

The agency said Amazon is the market leader in smart speakers in the US with a 73 percent share. Google followed with 14 percent and Apple with 10 percent, the company claimed.