Apple is challenging Amazon and Google by introducing a new lineup of smart home devices, such as the HomePod, set to release this year.
Key Details
- Apple is launching a new line of smart home devices equipped with Siri to challenge Amazon’s Alexa and Google Assistant.
- Data shows that by 2024, the home automation industry is anticipated to increase to $151.4 billion, with Amazon leading the way, with Google and Apple following behind.
- In 2021 Amazon held the dominant share of the market for U.S. home speakers, with 69% of devices sold over the five years leading to 2021, with Google at 25% and Apple at 5%.
- Apple is fighting back by releasing an updated line of its home automation devices, including an iPad-based HomePod, to drive sales.
Why it’s news
Amazon has been leading the home automation movement with around 100 million Echo devices sold worldwide.
Amazon has begun losing money with Alexa as the company has had a tough time monetizing on the device after the initial product purchase. The company is projected in total to lose over $10 billion on Alexa.
Apple is pushing back by releasing a new line of home automation devices and an updated Apple TV box to bring in new customers. The new line of Apple products will have updated display screens, a faster Apple TV, and a relaunch of its HomePod speaker.
The new display focuses on the iPad, which looks and works like a small iPad that can control thermostats and lights within the house and receive calls and FaceTime chats.
The product can be standalone or mounted on walls or other areas using attached magnetic fasteners, according to people with knowledge of the devices.
Apple recently relaunched its Apple HomePod speaker which was previously launched in 2018 before being discontinued in 2021 after receiving low sales. The device launched at $349 before Apple cut the price to $299 after customers complained of the high cost and limited functionality.
Apple launched a HomePod mini in 2020 for $99, which had good sales and moved its way up in the speaker market, taking a 13% share, according to Strategy Analytics.
The company is also targeting Amazon in the TV space by releasing a faster version of its Apple TV box. Apple holds a 5% market share, while Amazon holds 30%.
The exact launch dates of Apple’s products haven’t been released yet, but are expected sometime this year.
