Comments on: Apple – Battle for the smart home pt. VI

By: Tim Nash

Tim Nash — Tue, 30 Jan 2018 06:54:04 +0000

As usual, margin will depend on scale of manufacture. If Apple sells year 1 Watch numbers, say 6-8M, it will have cheaper access to quality components than any competitor, as it already uses high quality audio components in iPhones, iPads and Macs. Apple will also have, with sales of HomePods, AirPods and Beats, a $5B+ audio business.

By: windsorr

windsorr — Tue, 30 Jan 2018 06:17:29 +0000

Hi Tim… yes you are right… $349… thanks….
The issue is not whether Apple can compete but whether it cabn do so at 40% gross margins… thats where the difficulty lies I suspect

By: Tim Nash

Tim Nash — Mon, 29 Jan 2018 19:09:46 +0000

‘At $399, it is going up against some of the very best that the audio industry has to offer’

HomePod is $349, which is less than the Google Home Max at $399. From the reviews so far (none in depth) sound quality is better than the Max and Sonos One. Where HomePod is on the quality spectrum, we will find out after the 9th.

I expect HomePod to sell in Apple Watch type numbers and like the Watch to dominate the quality sub $1000 market. Given the size and reach of Apple, very few of the speaker manufacturers will be able to compete, provided Siri covers the music side well.