Published: Fri, June 09, 2017
Industry | By Dora Warner

How Apple Could Challenge Amazon's $10 Billion in New Revenue

How Apple Could Challenge Amazon's $10 Billion in New Revenue

The HomePod features seven tweeters and a 4-inch woofer that Apple suggests will provide sound that will "rock the house".

HomePod users may initially be constrained by Siri's lack of capabilities as compared to Alexa, which also boasts the ability to order millions of Amazon products as well as food from restaurants like Domino's. The Apple Speaker is focused on music first, not Siri.

However, unlike Amazon Echo and Google Home, Apple is positioning HomePod more as an alternative to connected music-systems from Sonos and Bose. On the other hand, Apple didn't mention of any such productivity feature for their HomePod at the WWDC.

"Apple is smart to frame the HomePod as a music-centric and audio-centric device rather than just another smart speaker or another home for Siri", said Jackdaw Research analyst Jan Dawson.

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Technically speaking, the Apple HomePod is a wireless speaker which is capable of using spatial awareness and sense where it is located in the room, and automatically adjust audio output accordingly. Apple said HomePod can pick up the commands from across the room with a 6-microphone array.

Apple announced the arrival of a new voice-controlled speaker Monday, hoping to keep up with competitors that already offer highly similar devices.

Standing at just under 7 inches tall, the HomePod comes in the standard Apple white or black colourways. According to Strategy Analytics, in Q4 2016 almost 4 million such speakers were sold globally, of which Amazon commanded an 88% market share.

"They seem to be using it to drive superior user experience, sound quality and privacy", he said.

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HomePod like all the other Apple devices send information to Apple's server in encrypted form and with your unique Siri identifier that makes your personal information secure.

HomePod is created to work with an Apple Music subscription, providing access to over 40 million songs.

"Consumers have now got used to the idea of smart speakers and Apple now has a captive audience to sell its HomePod to and the power of its brand will ensure it's a successful launch".

With so many low-cost Bluetooth speakers already on the market, I think Apple might have a hard time carving out a niche. Apple plans to launch HomePod in December for $349, starting with the United States, United Kingdom, and Australia.

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