Does Amazon HomePod stand out from Amazon's dominant smart speaker market?

OFweek smart home network news Apple this year's WWDC announced the upcoming HomePod smart speakers. Slice's data shows that currently smart speakers are dominated by Amazon, even Google's Google Home has failed to threaten the status of Amazon, in addition to professional music speaker brand Sonos. Can Apple make the rounds as usual? Look at the data analysis article entitled "What Apple's HomePod Is Up Against" released by The Information.

New data shows that in the voice-activated home smart speaker market, Google has not yet threatened Amazon’s status. Apple is planning to launch HomePod smart speakers, and Google and Amazon's products are HomePod's competitors.

Data shows that Amazon's cheapest smart speaker version ($49 Dot) performed well. Last September, Amazon’s Echo, which was priced at US$179, surpassed Dot’s market share within only two months. Its mid-range product, Tap, priced at $129, has no significant impact. According to Slice Intelligence, Google Home speakers sell for $129 and its market share has been declining since its launch last October.

Key points:

Apple's HomePod is entering the market dominated by Amazon's Echo series products, which are on average five times more expensive than consumers buying Echo series products.

Apple has clearly stated that home speakers are positioned as high-end music devices, although HomePod also has Siri's voice intelligence capabilities. As a music device, Apple will compare with other advanced speakers without voice assistants (such as Sonos). And its price is 349 US dollars, far higher than those who are between 199 US dollars and 499 US dollars. Of course, before Apple also faced such a situation, the final performance is still good.

In contrast, Amazon wants music to attract users to try Echo, but its ultimate goal is to make it a "smart" speaker that acts as a central hub for smart homes, allowing users to turn on lights or order pizzas by voice. By lowering the price of entry products, Amazon is striving to gain as much market share as possible, turning Alexa into a mainstream voice platform.

This data comes from Slice, which includes all of these devices—including devices with voice assistants and devices that did not quickly lose the market. Amazon’s three home speakers (Echo, Dot and Tap) now account for nearly half of the market. Its share far exceeds that of Sonos, Google and Bose. (See photo above)

The data shows that consumers tend to be cheap Amazon devices. On average, it estimates that consumers spend an average of $79 to buy Amazon speaker products. In contrast, according to Slice, consumers spend an average of $118 on Google Home and $223 on Sonos products.

Despite the high price of Sonos, its performance is indeed strong. Its market share almost doubled in the first five months of this year and even briefly exceeded Echo's share in April. Some of Sonos's success may be related to its users being able to pair with Echo Dots for better sound quality. At the same time, Google Home fell from the peak of 17.5% at its first launch in October 2010 to 3.2% in May.

In order to obtain accurate data, from June 2016 to May 2017, Slice Intelligence of the United States tracked the purchase data of 180,345 online shoppers. Slice's technology can collect online receipts from Amazon, Nordstrom, and other online shopping sites for a broader online purchasing history. The company was acquired by Lotte in 2014.

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