Who is surprised by this? We all know Apple won’t break out HomePod sales numbers, so we’ll never really know how they are selling. HomePod is hardly a product with broad appeal. It’s an expensive Apple Music accessory. A niche within a niche. It won’t come close to selling as many units as Airpods or even Apple Watch. I’ll be impressed if they sell a million HomePods this year, shocked if they sell 2.
When it comes to audio, there are two types of customers. The average customer doesn’t have a particularly discerning ear and bases purchasing decisions on price, loudness, maybe bass. There are plenty of “good enough” low cost speakers to satisfy these customers. Why pay more for HomePod? Especially if you don’t use Apple Music. The other customer will pay a lot for better quality. A lot. They’re never going to consider HomePod.
HomePod is a bust for people like me who already have speakers. I’m not about to replace the high end built-in speakers throughout my house with HomePods. If Apple is serious about home audio, they need to follow Sonos and offer speaker-less HomePods that either connect to existing amps and powered speakers or have a built-in amp. Until that happens, Sonos has nothing to worry about.
I’m an Apple fan and have been buying their products for 35 years, but I’m not delusional. HomePod isn’t a revolutionary product. It’s not a must have product. There’s nothing particularly stand-out about it. Yes, it offers great audio at a reasonable price, but so what? Like I said, the average person is going to find other, cheaper options to be “good enough.” Meanwhile, the high end buyer is going to the high end audio store where the sales person will sell him or her speakers that cost 2-10x what a HomePod costs, along with Sonos boxes to run everything.
Which leaves us with Apple Music subscribers as the primary target market. Will the Siri features convince the “good enough” Apple Music subscribers to spend more for a HomePod? I’m not so sure. If Apple gets 5% of Apple Music subscribers to buy a HomePod, that’s still less than 2 million units. It’s an accessory with a very limited audience. If they want it to take off, they need to give HomePod buyers a free year of Apple Music. And they need to challenge Sonos in the high end market by offering speaker-less HomePods so customers like me can use the speakers we want.