According to foreign media reports, Amazon and Google have discounted smart speakers during the holiday shopping season, and even lose a few dollars each time they sell one.
Both companies have reduced the prices of the smallest version of the smart-sounders Amazon EchoDot and Google HomeMini from $50 during the US holiday season to $29. The intermediate version costs more than twice as much.
And retailer Wal-Mart is offering $25 coupons for the device, which means that consumers can actually purchase Google's round Mini speakers for $4.
In 2017, Apple failed to launch the HomePod priced at $349 in 2017 as originally planned, and stated that the device will be available for sale in early 2018.
Analysts said that Apple’s goal is to profit from the device itself, and to strengthen Apple Music's monthly subscription price of 9.99 US dollars. Apple's voice assistant Siri is better at recommending new songs.
At the same time, Amazon and Google are more eager to recommend to consumers their digital assistants Alexa and Google Assistant, and profit from the data of the later sales of goods and shopping habits.
HomeMini and EchoDot do not match HomePod's sound quality, but once consumers see competitors appear, they will no longer need a high-quality, high-priced stereo. Even medium-sized Amazon and Google devices have discounted to $79 during the holidays.
Paul Eriksson, a senior analyst at IHSMarkit, said: "This kind of pricing is a good thing for consumers and a bad news for Apple."
Because some consumers may think that a $30 sounder can be thrown away cheaply, it won't be an obstacle when Apple's equipment arrives.
Amazon declined to comment on the Echo device, but said at a press conference that it sold millions of EchoDot speakers during the holiday season, making it the best-selling product at the online store at the time.
Google did not disclose the HomeMini's sales figures, but spokesperson Nicol Addison said the company is very satisfied with the holiday performance. Google will hand over these devices to new Pixel2 smartphone buyers and sell them for $29 at Wal-Mart, Target and Best Buy.
Amazon’s smart audio emerging market outside China dominates and Google lags behind. However, the sales of these devices are not enough to affect the financial performance of the two companies.
According to ABI analysis, EchoDot's parts value is about 31 US dollars. The component price in Google HomeMini is about 26 dollars. These figures do not include administrative expenses, transportation costs and other expenses, which means that their discounted versions are likely to sell at a loss. Analysts estimate that both companies suffered small losses and even undermined the sales of these devices.
IDC senior research analyst Adam Wright said: "Apple has encountered some problems. We have witnessed the explosive growth of the market in the past six months."
Conclusion: Although it seems that the sales volume of the three giant smart speakers has risen sharply, the actual use experience has not been unanimously confirmed by the public users. It can be seen that the product features and quality are still the core of sales. Even foreign giants are caught in a price war. If this is a “cake†in profits, I believe this is not necessarily a good thing for domestic smart home companies.
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