Apple cuts HomePod orders on weak demand, report says

No Echo here! Apple cuts Home Pod orders after sales prove to be lackluster

Due to these low sales, Apple has lowered its sales forecasts and cut manufacturing orders, according to the report.

Tech Radar reports that with some stores selling as few as ten HomePods a day, stocks of the device are "piling up", prompting Apple to slash its orders with Taiwanese manufacturer Investec.

The market is split between the three major competitors: Apple claimed 10 per cent with the HomePod, while Google claimed 14 per cent with the Home. The report that was revealed today said that it failed to specify Apple's sales expectations for HomePod and it doesn't assign a figure about the order reduction. However, Apple's main focus with the HomePod has been Apple Music, marketing it as more of an accessory device, rather than a new product category.

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Formally unveiled back in June 2017, but made available to early adopters just a couple of months ago, the Siri-controlled smart speaker appeared to generate the typical initial excitement around any new iDevice. If this report's numbers can be believed, Apple's physical stores alone would be on track to sell almost two million HomePods in 2018 before considering online and third-party retail sales - a trickle compared with other Apple products.

The report further noted that "Apple had an opportunity to put the HomePod at the center of a new ecosystem of smart home and other gadgets that aren't glued to the iPhone". After debuting to mediocre reviews, the smart speaker's proclivities for damaging wood and stumbling on Siri requests became obvious, compelling Apple to work on fixes that are still in progress. During the pre-order period, the HomePod garnered a third of the US smart speaker market by units sold, according to Slice Intelligence. In February and March that dropped to 19%, compared to 68% for Amazon, 8% for Google, and 5% for Sonos. He says Apple will probably sell 7 million HomePods this year and close to 11 million in 2019. Alphabet, he estimates, will move 18 million Google Homes in 2018 and about 32 million the following year. The Apple Watch faced challenges when it launched, too, and is now widely recognized as the top performing smartwatch on the market (although still a tiny part of its maker's business).

But still, a premium acoustic experience seemingly hasn't spurred a spike in sales for Apple's astonishingly powerful smart speaker.



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