Apple cuts orders of HomePod on weak demand

Apple cuts orders of HomePod on weak demand

Due to these low sales, Apple has lowered its sales forecasts and cut manufacturing orders, according to the report. HomePod has also suffered from mixed reviews and a lack of native support for streaming services other than Apple Music (i.e., Pandora and Spotify).

Apple's new $329 home speaker had strong pre-orders when it was launched February 9, but it has petered out in the increasingly competitive home speaker market since, Bloomberg reported Wednesday. Apple has been touting the HomePod's superior sound quality but so far hasn't enticed many consumers to part with US$349.

Apple's HomePod smart speaker is more speaker than smart. The China Times alludes to a new HomePod revision that is substantially cheaper than the current $349 entry price, presumably bringing Apple's smart speaker range into more direct competition with the budget offerings from Google and Amazon.

According to that data, Apple was able to capture 10 percent of the smart speaker market when the Homepod became available for pre-order in late January.

Slice says the HomePod's market share dropped to 10% at the 10-week mark and to 4% three weeks after launch.

The smart speaker market is dominated by affordable smart devices with average speaker performance, which is the opposite of the HomePod.

A report from Bloomberg suggest Apple's "smart" speaker isn't quite hitting the heady heights Tim Cook would like - and stocks are piling up. Since arriving at retail, Apple has managed to snag 10 percent of the smart speaker market, which pales in comparison to Amazon's 73 percent marketshare.

It's still early days for HomePod - but there's no doubt that it's facing some problems. But Bloomberg reports that buyers expected capabilities similar to the Amazon Alexa and Google Home and more independence from the iPhone. It didn't help that the HomePod missed its December rollout, which meant it couldn't take advantage of holiday season sales. Alphabet, he estimates, will move 18 million Google Homes in 2018 and about 32 million the following year. The company is now lowering the HomePod sales forecast and cutting the orders for the device on the back of weak demand. You can command the speaker to perform a number of actions including playing music, asking about news, sports and weather among other things.

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