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Friday, April 13, 2018

Apple slashes HomePod production after underwhelming sales

Siri-powered smart speaker stumbles


Apple has had to cut down on its HomePod orders after the smart speaker had an underwhelming two months of sales, according to news outlet Bloomberg.

The HomePod was a late arrival to the smart speaker market, already dominated by the Amazon Echo and Google Home devices.

While pre-orders were strong, Apple has reportedly had to lower its sales projections and slash orders with Inventec, the HomePod’s Taiwan-based manufacturer. 

Retailer inventories have shown a “piling up” of the device, with some stores selling less than ten units a day.

Small bite of the market

High pre-order numbers lead to analysts suggesting the HomePod would sell well, but the delayed February launch meant Apple lost out on the Christmas sales.

Adding to that is the premium price tag and the inability to move away from Apple’s ecosystem, both potential factors in slower sales.

Despite the low sales, Apple isn’t likely to stop the manufacturing of the HomePod altogether, being a massive part of the company’s line-up of premium gear, which will include brand-new sets of AirPods slated for 2018 and 2019, plus a pair of high-end over-ear headphones.




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