Apple’s share of the global smart speaker market grew considerably as HomePod shipments increased by almost 30% year over year.
HomePod, which once had only a tiny sliver of this market, has gained considerably on Amazon and Google.
HomePod mini was a breakthrough device
Smart speakers focus on streaming music and podcasts from services like Apple Music and Spotify. Beyond that, they serve as the center of smart homes.
Amazon continues to dominate the market for these devices, but Apple has seen success with the HomePod.
In the first months of 2022, Apple shipped 4.5 million smart speakers, according to data from Strategy Analytics. That’s up 29% from the 3.5 million it shipped during the same quarter of 2021.
“Apple’s HomePod mini was the top-selling device overall in Q1 2022,” according to the market-analysis firm.
Cupertino’s growth in this market can be traced back to the release of the $99 HomePod mini in 2020. Before then, Apple’s only smart speaker cost $299 (after a $50 drop from its original price of $349). Apple sold only 2.1 million original HomePods in the quarter before the release of the mini, according to Strategy Analytics.
Apple discontinued the original HomePod in March 2021. After that somewhat surprising decision, prices for the larger, better-sounding smart speaker rose in the secondary market. In April 2022, the average price of used or refurbished HomePods hit $336.03. Increasingly rare new HomePods sold on eBay hit an average price of $638.76.
Up against tough competition
Stronger sales in Q1 2022 gave Apple 12.7% of the global smart speaker market, up from 9.3% in the same quarter of 2021.
Amazon has 28% of the market, and Google has 17%, according to Strategy Analytics. Both saw only modest increases in shipments. So Apple is catching up, but still has a ways to go.
The increase in HomePod mini shipments was enough to put Apple in the No. 3 spot in world smart speaker market. It beat out Chinese competitors Alibaba and Baidu, both of whom saw dramatic drops in unit shipments in Q1. Meanwhile, prices of the original HomePod
Looking ahead
Strategy Analytics warns that the U.S. smart speaker market is begining to show signs of saturation, as most people who are going to buy one already have. “The market is shifting from new customer acquisition to add-on or replacement sales which historically have longer sales cycles,” noted Jack Narcotta, an analyst with Strategy Analytics.
Also, interest in smart speakers with built-in displays is growing. Apple doesn’t make one of these, but is reportedly working on a combination Apple TV, HomePod and FaceTime camera. Cupertino is also expected to introduce an upgraded version of the HomePod mini in late 2022.
