May 20, 2018

Amazon's global smart speaker share drops below 50 percent in first quarter

18 May 2018, 05:49 | Dale Webster

Amazon's Global Smart Speaker Share Drops Following the Launch of HomePod

Amazon's global smart speaker share drops below 50 percent in first quarter

Apple is off to a slow start in the smart speaker wars, according to newly released data from research firm Strategy Analytics. Since Amazon had a head start of almost 2 years, the company was leading in sales and market share tremendously, and that continues today.

With the new smart speaker from Samsung due to land in August of this year, Amazon's market share may suffer further knocks.

The analysts use the word "shipped", which may mean that the actual sales of smart speakers HomePod even less, writes The Verge.

According to Strategy Analytics, Apple's HomePod was only the fourth most popular smart speaker on the market in the first quarter of 2018. Alibaba and Apple collectively grabbed 13.6pc of total smart speaker sales for the first quarter of 2018. Last month reports surfaced that lackluster demand for the speaker has resulted in Apple reducing orders with at least one manufacturer and lowering its internal forecasts. But its shipments doubled from this time past year.

"This is partly as a result of strong growth in the Chinese market for smart speakers where both Amazon and Google are now absent", Watkins said.

Apple's 600,000 sales estimates contrast with the 2.4 million that Google purportedly sold of its Google Home speakers, giving it a market share of 26.5 per cent, and market leader Amazon's four million unit shipments, capturing a market share of 43.6 per cent. Meanwhile, the newer kids on the block of Alibaba, Apple, and Xiaomi achieved 0.7m, 0.6m, and 0.2m shipments respectively. "Alibaba and Xiaomi are leading the way in China and their strength in the domestic market alone is proving enough to propel them into the global top five", Watkins added. Rumours also suggest Apple is developing a cheaper version of the speaker, much like the Amazon Echo Dot and the Google Home Mini. "We are clearly heading towards to a time in the not too distant future when voice becomes a standard mode of technology interaction alongside established approaches like keyboard, mouse, and touchscreen", wrote the analyst.

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