Cleantech Market Intelligence
Delay of HomePod Shows Signs of Weakness in Emerging Smart Home Market
Apple has made big news this week—but not in a good way. On Friday, the company stated that it would be delaying the release of HomePod from a non-specific date in December to the even more ambiguous “early 2018.” The delay is a blow to the tech giant, which will miss the relatively high sales volume that comes with the holiday season. The new release date also means Amazon, Google, and Sonos remain largely unchallenged in the connected speaker market and will continue to gain the hearts and minds of consumers with their devices, some of which have been available for years. What may be worse for Apple is that the HomePod will be released at a price of $349, which appears obscenely high against the two rival speakers from Amazon and Google (which are currently in a price-cutting battle and peddling the miniature versions of their signature devices at approximately $34 for Black Friday). Though Apple is focused on offering a high quality speaker with advanced sound technology, this high tech move may not be enough to win consumers over and help the company gain market share in the young connected speaker market.
This type of delay is nothing new for Apple. The company regularly sets ambiguous release dates and delays product shipments, from the original Apple Watch to Apple AirPods to HomeKit-compatible devices. It is also known for entering an already developed market and disrupting it, which occurred with the release of the iPhone. This means the delay of HomePod could be nothing but a small hiccup in holiday sales for Apple and that it could still emerge as a major player in the connected speaker industry.
Time to Get Serious
However, the larger implication of this delay is that Apple is losing out on its spot in the smart home. The smart home is becoming an increasingly competitive space, with large tech incumbents, service providers, utilities, and startups all getting involved and vying for market share. The ability to own the smart home opens up a world of opportunities for companies, including new service-based revenue streams and more personalized engagement with consumers. The connected speaker has become a pivotal part of the smart home’s development by acting as a centralized hub and fostering interaction through voice activation. To lose out on this opportunity could be devastating to Apple, especially since the company already has a trusted device in people’s pockets that is a key tool for controlling the smart home. The smart home market is progressing with or without Apple, and it’s time for the company to get serious about becoming a major player in this market or letting Amazon and Google take the lead.