Apple unveils HomePod speaker, taking on Amazon and Google

SAN FRANCISCO — Apple entered the growing field of voice-controlled speakers for the home on Monday (June 5), taking on early leaders Amazon.com and Google.

Apple’s speaker, called HomePod, emphasises the enjoyment of music and looks like a wide can with curved edges. Unlike Amazon’s new Echo Show, Apple’s device does not have a screen. It will allow users to talk to Siri, Apple’s digital assistant, while at home and costs US$349 (S$ 481) — almost double the price of most competing products.

HomePod is Apple’s first major new hardware product since the Apple Watch’s release in 2015, and it comes at an important time for the company. The Cupertino, California-based technology giant is seeking new revenue streams after becoming heavily reliant on the success of the iPhone.

The market for internet-connected speakers and other smart home technology may be big enough to help Apple diversify. Shipments of intelligent home speakers surged nearly 600 per cent year-over-year to 4.2 million units in the fourth quarter, with Amazon taking about 88 per cent share and Google 10 percent, according to consultant Strategy Analytics. Spending on smart home related hardware, services and installation fees will reach US$155 billion by 2022, up from almost US$90 billion this year, with devices accounting for about half of that, the consulting firm also estimates.

Chief Executive Officer Tim Cook has stressed the importance of Apple’s services business, predicting it will double in size by 2021. The new speaker establishes a bulwark inside the home to lock customers more tightly into these services. It also combats the competitive threat from Google’s and Amazon’s connected speakers: Those don’t support Apple services like Apple Music, which brings in US$10 in revenue per user each month. Without an Apple speaker, consumers seeking smart home devices may opt both for competing hardware and services like Amazon Prime and Google Play Music.

The product was introduced on stage by Apple executive Phil Schiller, who said it works closely with the company’s Music app and will ship in December in the US, UK and Australia. The Siri digital assistant has been updated to understand more spoken requests focused on music, he added.

The device has already entered production, Bloomberg reported last month. It has been tested by some Apple employees in their homes for upwards of a year, according to people familiar with the matter.

During this week’s conference, Apple also discussed significant software upgrades for the iPhone, iPad, Mac, Apple TV, and Apple Watch and debuted new iPad and Mac computer models. BLOOMBERG