Either we’ll see prices slashed when Apple discountinues HomePod (á la Apple Hi-Fi circa 2005) or a reworked pricing model that acknowledges an Apple Music subscription is mandatory for full product functionality. HomePod is not a traditional Apple stand-alone product (like iPod or MacBook) so Apple can’t expect the same hardware margins as before. They can’t have it both ways. HomePod and Apple Music are joined at the hip. Apple might see more success with a classic razor-blade pricing model: Sell one handle at a loss, but make a killing each month from replacement blades.
Now, you could argue that the Apple Watch is also an uncompetitively-priced accessory-product that handcuffs you to iPhone - but despite that it sold well. No argument there. The big difference is that the watch accompanies you every second of your day, making life simpler. The wearer sees a constant return on their ‘investment’. The same is not true for the HomePod, particularly for consumers who leave their homes each day to go to work.
My HomePod is fabulous. I will buy another once stereo pairing is enabled. It is worth every cent. Siri works well for me and I love how the device can hear me no matter how much the volume is cranked up.