The encyclopedia · Product & Design · Product decision · 2018–2021
HomePod priced a weak Siri at $349 — Apple killed the first generation in 2021
Apple priced its smart speaker at $349, three times the Echo, with no voice-assistant edge; it never took off and Apple discontinued it.
Apple · 2021-03-12
What happened
In February 2018 Apple launched the HomePod as a premium smart speaker, priced at $349 — roughly three times the Amazon Echo or Google Home it was meant to compete with.
The price was supposed to be justified by sound quality, but the product was also a voice assistant, and its Siri was the weakest of the three. Buyers who wanted a voice assistant chose the cheaper Echo; buyers who wanted sound chose a real speaker.
Sales told the story: about 600,000 units and a 6% share in Q1 2018, putting it fourth behind Amazon, Google and Alibaba. Apple cut the price to $299 in April 2019, but the product stayed a niche.
On 12 March 2021 Apple discontinued the original HomePod, keeping only the smaller, cheaper HomePod Mini. The flagship speaker was quietly retired as a premium bet that never earned its price.
Why it happened
- At $349, three times the rivals, the HomePod needed an edge to justify itself, but its Siri assistant was the weakest of the options
- The product was caught between two jobs — a smart assistant and an audiophile speaker — and lost to the Echo on value and to proper speakers on sound
- A 6% share and a fourth-place finish showed the premium pitch never moved the market, and the price cut came too late to change the story
The lesson
A premium price needs a reason a buyer can feel. Charging $349 for a speaker whose main rival did the assistant job at a third of the price left the HomePod a niche, and Apple retired it.
Sources
- Wikipedia — HomePod (release, sales, discontinuation)
- TechCrunch — Apple discontinues original HomePod, will focus on mini
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