HomePod’s Limited Market Share, Netflix vs In-app Subscriptions – TMO Daily Observations 2018-08-22
John Martellaro and Kelly Guimont join Jeff Gamet to discuss HomePod’s lack of growth in the smart speaker market, plus they look at Netflix’s plan to cut off Apple from in-app subscription purchases.
Sponsors
Molekule is a complete reinvention of the air purifier, not just an improvement on existing, outdated technology. Its PECO technology goes beyond HEPA filtration to not just capture but completely destroy the full spectrum of indoor air pollutants, including those 1000x smaller than a HEPA filter can trap. Molekule has already helped allergy & asthma sufferers around the country better cope with their conditions and significantly reduce their symptoms. Get $75 off your first order at the Molekule website with the special discount code TDO.
Start your hunt for the perfect employee with LinkedIn Jobs and get a special discount for being a TDO fan. Just Go to LinkedIn’s jobs site and get $50 off your first job post.
If it was 2013 and Apple released the HomePod in its current form, you could see it creating a whole new market segment – A fine audio system that was AI equipped (sort of). Today though, the HomePod’s value proposition for customers expecting the capabilities and price point in a space owned by Google and Amazon just isn’t there. It feels like the 2018 version of the iPod Hi-Fi.
We can argue that Apple aren’t always first to the market and so on, but when Steve showed us the first iPod, Apple created a whole new ecosystem for music they continued to build on. In contrast, the HomePod feels like a product that’s all dressed up with nowhere to go, and finally found the party. Unless Apple decide to answer the criticism and deliver a desirable, competitive product in this space, I see it relegated to their ‘other’ product space for a while. Maybe they’re okay with that?
Yet again people not getting Apple!
9 out of 10 people using “smart” speakers use them as……..Speakers!
Apple’s market share is around 6% in the first 6 months of entering this space with a premium product that came out after the Christmas buying season with no discounts. Come Christmas, we will see prices under $300 and substantial increase in sales because it is a quality product that people will love. They may even officially re-price the device under $300 to pick up sales.
They have multi-room, stereo paring, and will have handoff voice calling. Once they get speaker dependent recognition it will be even more useful in a family setting. I love the quality of HomePod and it will be a serious wish for my kids, for College Dorms etc.
If you want a Google Home or any of the other low quality speakers out there feel free but that is not apple’s business. I don’t see them making a lower quality speaker, unless they sell it under the Beats brand.
If Apple hasn’t moved 10m units by end of it’s first year, we can start to call this a failure, but I don’t see that happening…predictions anyone?