Apple cuts orders of HomePod on weak demand

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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.

Due to these low sales, Apple has lowered its sales forecasts and cut manufacturing orders, according to the report. Only said enthusiasm evaporated nearly instantaneously, as potential customers learned the non-audio-playing capabilities of the $349 gadget were somewhat limited compared to significantly cheaper Echos and Google Homes.

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During the HomePod's first 10 weeks of sales, it eked out 10% of the smart speaker market, compared with 73% for Amazon's Echo devices and 14% for the Google Home, according to Slice Intelligence.

Apple's CEO will be providing a quarterly summary on May 01, 2018 and perhaps at that time he'll shed some light on HomePod over and above marketing-speak. It's worth noting that Apple, in the weeks and months preceding the HomePod release, made a point of noting that its main objective with the device was to release a smart speaker with unrivaled acoustic performance. In our HomePod review, we praised the overall sound quality of the speaker and its attractive design, but lamented the limitations around Siri and the fact that it works directly only with Apple Music.

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Bloomberg reported on Thursday that the company is selling less than 10 units of the product in some of its stores per day with inventories rapidly piling up in most locations. Apple declined to comment.

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.

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To be fair, Apple pitched the device not necessarily as a competitor to Amazon's Echo, but rather as a high-end speaker that also delivered Siri integration. Alphabet, he estimates, will move 18 million Google Homes in 2018 and about 32 million the following year. Yet Siri's inability to rival Amazon's Alexa and Google's Assistant in practicality, including answering questions or ordering food, has placed HomePod at a competitive disadvantage relative to less expensive smart speakers.

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