While this is the first rumor I've seen that references "cheaper price", I'm doubting Apple is interested in selling these that low. My working gut guess has been about $499 but- admittedly- that's just my guess. Apple just doesn't tend to do "cheaper." See products actually rolled out in the last year or so and you won't find many/any where the crowd is dazzled by the bargain pricing. And that- IMO- has been the primary problem with HomeKit everything to this point in time (11 years after launch). HomeKit inclusion adds a steep premium to the prices of all the stuff... stuff that works largely the same way for other platforms minus the fat cost premium.
But as that pricing is a guess and my counter is a guess, we only really find out when it arrives.
This isn’t the first rumor that’s referenced the cheaper price than an iPad, all of Gurman’s reports say the HomePad will be much cheaper and smaller than the iPad. And the cheapest iPad is $350.
Additionally, if you’ve been paying attention to the supply chain rumors, you’ll notice that all of the displays that have been connected to this product have been very low-end LCDs, even more lower end than the basic iPad.
Additionally, this display is not supposed to have the speaker built-in, but as an additional docking station sold separately. The device in its default state will just be a 6 inch square screen that can be mounted on a wall or on a dock.
The thing that actually could bring the price to $499 is that speaker dock, but seeing as Apple wants these screens everywhere they won’t price them that high.
Apple prices products lower when they expect you to buy multiple of them, think AirTags ($29), HomePod Minis ($99) and Apple TVs ($129).
I expect this HomePad to fit in with those. The real profit will be when people purchase four of them, different docking stations for each one.
$150 for the one that’s on the nightstand an extra $200 for the speaker, another $149 for the HomePad on the wall upstairs, another $150 for one downstairs…
The idea is that one day eventually no matter which room you’re in, no matter if you were wearing your watch or have your phone on you, have headphones in, it doesn’t matter, you will be able to control you’re home from all rooms.