Aggressive smart speaker pricing could hurt HomePod sales | Cult of Mac

A new report notes that both Amazon’s Echo and Google’s Google Home family of devices were so heavily discounted over the holidays that they likely lost their companies a few dollars per unit. This is in sharp contrast with the kind of pricing that Apple plans for its $349 device, when it goes on sale in early 2018.

The CNBC article notes that the Amazon Echo Dot and Google Home Mini were reduced to as little as $29 over the festive season. Google also gave the device away to buyers of its new Pixel 2 smartphones. Components for the devices cost Amazon around $31 for the Echo Dot, while the Google Home Mini costs Google around $29 in parts — plus the shipping, R&D costs, and more.

“That kind of pricing is great for consumers and bad for Apple,” said Paul Erickson, a senior analyst with IHS Markit. Adam Wright, senior research analyst at IDC, echoed the same sentiment. “Apple is in a bit of trouble,” he said.

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Aggressive smart speaker pricing could hurt HomePod sales | Cult of Mac.

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