The problem is Apple’s focus with HomePod is all about being a music speaker and not a superior voice assisted IoT hub.
That’s a feature, not a bug.
What people are failing to see in this deal is that both Apple and Amazon are coming out winners. The loser here is Spotify and that’s a deliberately calculated move by Apple.
This is a complex strategy so it won’t make sense if you’re looking at it two dimensionally. You need to look (far) ahead, not just at the current situation.
Here are the points that will help understand that strategy:
1. Amazon will never win in the smartphone market. Apple and Google are too entrenched. Amazon is not a threat to Apple’s revenue generation.
2. Amazon Echo is a product whose only purpose is Alexa. Meanwhile, Apple will continue to sell iPhones regardless of how far behind Siri is from Alexa. They’re not competing with each other.
3. HomePod isn’t trying to be an Amazon Echo competitor. It’s playing for an audience who appreciates excellent audio quality
and who subscribes to Apple Music. Those people will not buy an Amazon Echo for the purpose of listening to music.
4. By putting Apple Music on Amazon Echo, Spotify is no longer the default music streaming service with a de facto exclusive on Alexa devices. Echo users can now subscribe to or retain their Apple Music subscriptions while using it on the established home assistant. Apple builds a subscriber base, further eating into Spotify, Apple’s real competitor.
5. Now, which speaker do Apple Music subscribers buy if they want excellent sound? I’ll refer you back to point 3. Amazon Echo and HomePod aren’t competitors: they’re complementary to one another. People who buy an Echo for Alexa can also purchase a HomePod for Apple Music sound quality.
6. Siri plays no role here — for now. Apple is clearly investing heavily in AI and in Siri itself given its high profile hires and how it’s reorganized its executive structure. Apple doesn’t have to beat Alexa in a sprint. Voice assistant tech is going to be a long marathon. They’de still years away from being the natural language assistants we envision in sci-fi.
7. iPhones will continue to sell with or without Siri matching Alexa’s popularity. People don’t buy them for Siri. Elsewhere, Apple is working on conquering the next generation of personal computers: wearables. AppleWatch is so ahead of the competition that it’s pretty much the only player, very much how iPod lead the field for its entire existence.
8. With iPhone, Apple Watch and HomePod selling for reasons unrelated to Siri’s ability to outsmart Alexa, what they all share is that they
do have Siri and once the advanced Siri that Apple is so clearly developing is ready for prime time, all of those devices will instantly become Siri devices with a much bigger installed base than Alexa.
Check mate.