Apple is about to launch the HomePod smart speaker. Who will pay for the high price?

Apple announced that it will launch the smart speaker HomePod in the Japanese market at the end of summer. The product focuses on music playback, can stream third-party audio sources via AirPlay, and can use voice-controlled assistant functions through Siri. The product price is 32,800 yen (about 2,170 yuan).

Limited product functions and insufficient consumer motivation

After being launched in mainland China and Hong Kong on January 18, 2019, Apple's smart speaker HomePod is expected to enter the Japanese market in the third quarter. Its main product feature is the sound effect that automatically adjusts according to the space. In addition to playing music and radio programs in the Apple ecosystem, it can also stream third-party audio sources such as Spotify through AirPlay, and is equipped with Siri voice assistant, which can be used to query the weather, send messages, and control smart home products by voice control.

Currently, the main function of smart speakers in the global market and the function most commonly used by consumers is listening to music. Apple HomePod also focuses on playing streaming music, but the listening content is limited to Apple Music and iTunes, etc. If you want to play third-party audio sources, you have to open another function connection.

Compared with other smart voice assistants, Siri's functions are still not mature enough and currently lack localized features. In addition, Apple's smart home products are still very limited in terms of ecosystem and penetration, so consumers have little motivation to buy them.

HomePod is priced too high, and sales are difficult to increase

The price of HomePod on the Japanese official website is 32,800 yen. In the Japanese market, the price of similar products from major competitors is less than 17,980 yen. The original price of HomePod on the Chinese official website was 2,799 yuan, and although it has now dropped to 2,299 yuan, it is still much more expensive than Xiaodu and Tmall Genie smart speakers that cost only 100 yuan.

As a latecomer in the Asian smart speaker market, Apple is already at a disadvantage compared to its competitors. Its product prices are higher than those of other advanced players, and it still faces the same overpricing problem in Asia as in the US market.

In addition, HomePod's product features are not significantly different from other brands, and its indispensability is low from a functional perspective. In addition, Apple's smart home ecosystem has not yet taken shape. Relying solely on its brand effect and support from Apple fans, it is estimated that sales in Japan will still be difficult to grow significantly.