Demand for Apple's HomePod stalls after hot start

By Gadjo Cardenas Sevilla

It seems that demand for Apple's smart speaker has slowed down. The HomePod began shipping to customers in the US in February, and seemed to be grabbing a lot of attention during its news cycle. The device was praised for its stunning sound which was at a level of larger, more expensive hi-fi speakers. The HomePod, it seems, was just the smart speaker the Apple ecosystem was waiting for.

Two months later, however, it looks like the HomePod demand is going flat. Bloomberg reports that Apple has lowered manufacturing volume for the smart speaker. The same report says that there's a possibility a cheaper and smaller model will be coming soon.

I had reservations about the HomePod's value proposition a year ago, just after it was announced. While there was no question Apple could make an innovative and impressive sounding speaker, I was skeptical of the range and capability of the Siri assistant compared to what Amazon and Google were offering.

Closed exclusivity to Apple Music and iTunes, as well as lack of availability outside of the US and UK. All these concerns still hold true and have been covered at large by various reviewers. Will offering a cheaper, smaller HomePod, that still has these issues matter?

The HomePod seems to be following in the footsteps of the Apple TV. It is the more expensive option in its class, does a stellar job of delivering content from Apple subscription services (what iTunes is to movies on Apple TV, Apple Music is to audio content on HomePod). Both devices fall short at being smart home hubs and strictly limit non-Apple services from being used on the hardware. Apple may have some Siri and AI announcements at this year's WWDC pertaining to HomePod, specially now that it has acquired new talent int the field. Consumers are right to sit tight and wait until HomePod offers a more complete solution.

Source: Bloomberg