Reuters reports that Amazon and Google’s Alphabet division both discounted their virtual assistant speakers so deeply over the holiday shopping season that they likely lost a few dollars per unit, “highlighting a sharply different strategy from Apple as it prepares its HomePod speaker,” according to pundits such as Paul Erickson, a senior analyst with IHS Markit and Adam Wright, senior research analyst at IDC.
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Both companies cut prices for the smallest version of their speakers, the Amazon Echo Dot and Google Home Mini, to as little as $29 from $50 for the U.S. holidays. Midlevel versions cost a bit more than twice as much.
However, Apple aims to make a profit on its HomePod (due in “early 2018” after a delayed release) and bolster sales of its $9.99 per month Apple Music subscription, analysts said. Though Amazon and Alphabet lost money on their speakers, their discounted pricing will probably hurt HomePod sales, they add.
“Apple is in a bit of trouble,” Wright said.
The HomePod will cost $349. The device is just under seven inches tall and looks like a piece of furniture. It will be available in both space gray and white, and also acts as a hub for HomeKit devices to provide remote access to home automation.