The following is a blurb from a BI Intelligence research note using exclusive data from our BI Insiders Panel. To access the complete survey results, please subscribe here.
Apple finally jumped into the smart speaker market, but it hasn’t inspired the fervor that we’ve come to expect from the iPhone-maker’s new releases, according to exclusive survey data from BI Intelligence.
Early indications suggest that the Siri-controlled HomePod won’t generate the excitement it needs to overtake competing products — most notably Amazon’s newest offering, the Echo Show.
Apple could sell around 5.2 million HomePods in the product’s first year on the market, according to our back-of-the-envelope estimate. That’s compared with up to 9 million Echo Shows. Here are a few key data points and how we came up with our estimate:
- Respondents to our survey were more likely to be aware of the HomePod than the Echo Show. Seventy-six percent of respondents had heard of the HomePod, compared with 52% who were aware of Amazon’s newest release.
- But the HomePod is generating less excitement. A quarter of survey respondents told us that they plan on buying Apple’s smart speaker. And only 5% said that they’d pick up the speaker as soon as they can, when it’s released in December. That’s a less enthusiastic response than consumers gave the Echo Show, Amazon’s newest smart speaker that features a screen and video-calling capabilities. In our survey, 28% of respondents said they’d pick one up.
- Cost is driving away potential HomePod buyers who have cheaper alternatives to choose from. Our respondents are relatively affluent, tech-savvy millennials, and they may have a greater appetite for high-end devices like the HomePod. Among those who don’t plan to purchase the HomePod, the top reason was expense (33%). The HomePod will cost $349, compared with $229 for a touch screen Amazon Echo Show, $179 for an Echo, or $129 for a Google Home.