Apple's gross margin on HomePod sales lags behind its rivals' figures
by Alan Friedman / Feb 15, 2018, 12:37 AM
Amazon, which created the smart speaker category with the first widespread rollout of the Amazon Echo in 2015, has a 56% gross margin on its Echo devices. Google, which has three variants of its Home line of smart speakers, is said to have a gross margin of 66%.
Al Cowsky, TechInsight manager, says that Apple is willing to accept a lower margin on the HomePod in order to keep the price lower than it could have been. Cowsky says that by doing this, Apple will be able to make up in volume what it loses in profits on individual HomePod sales. A teardown by IHS reveals that Apple's gross margin on its flagship Apple iPhone X smartphone is 64%. Had Apple priced its smart speaker with a similar margin, the device would cost consumers $600. Obviously, to remain competitive in a market it is entering late, Apple decided to keep the price of the HomePod lower than it might have been by accepting a lower gross margin..
As expected, the audio performance of the HomePod has been fantastic, while Siri has failed to match her rivals like Alexa and Google Assistant. You can check out our review of the device by clicking on this link.
Posts: 45; Member since: Dec 12, 2017
Is it the 1st of April today?
posted on Feb 15, 2018, 12:56 AM 7
Posts: 6734; Member since: Mar 16, 2013
I know. This is bull $hit that it costs Apple $216 for their single woofer mono speaker with only an A8 processor. Listen if companies like Raspberry Pi can sell an entire SBC for $35 and it has a quad core 64 bit processor, and a ton of ports. Then there is no way this HomePod costs $216. Also Apple care is $35. Out of warranty or no Apple Care for the HomePod is $280. This is a ploy to make it seem like Apple is giving you a lot for the HomePod price of $350.
posted on Feb 15, 2018, 7:24 AM 1
Posts: 386; Member since: Jul 25, 2015
We are witnessing the downfall of apple. It's a damn shame Jobs passed. Who knows where apple would be right now, I'd probably still be a fan. They lost their edge. They won't catch up with echo. Maybe google home. Another maybe, maybe their AR tech can right the ship. I get that they have scrooge Mcdck money so they'll always be around, but they won't be at the forefront
posted on Feb 15, 2018, 2:33 AM 1
Posts: 5611; Member since: Feb 10, 2013
Yea, their hardware is still competive, but they need to realise how far behind they've fallen in software The HomePod is a great example The hardware is top notch, even considered the best by many reviewers Yet the software means is barely a smart speaker in comparison with Echo and Home Also they need to be more customer friend, e.g. they should add support for bluetooth, aux, Chromecast, Spotify, Google Play Music, Amazon, ... so its useful and convenient
posted on Feb 16, 2018, 4:40 PM 0
Posts: 3054; Member since: Feb 06, 2013
It’s a great product it seems and good value for money from Apple.
posted on Feb 15, 2018, 2:37 AM 3
Posts: 306; Member since: Jan 30, 2017
No BT, no aux,no portability, no speaker pair, no water rating, no removable cable, no spotify...sure are a lot of No's for a 350 plus tax device. Siri is dumb, and useless. Apple Homepod is a rip off. Worth no more than 150 to 200 fof its features. Here is a way better value, Buy 2 Sony XB-40 light up led bt speakers. Comparable toJBL Xtremes. Pair them together to make them twice as loud and pair an Echo dot via BT for Audio out to the Sonys. All you really need is 1 xb40 or xtreme to destroy the Apple Homepod
posted on Feb 15, 2018, 5:22 AM 5
Posts: 306; Member since: Jan 30, 2017
Okay, lets say it sounds great. Well, if you're really into music, you wouldn't want a homepod to be your living room or even bed room source anyways. You'll def. want a hone theater/studio set up which can rattle your whole house incase you really wanna jam from your living room or bedroom for a party. I don't know about the best buy demos, but I know the ones I tried are can't fill a room the way a studio or hone theater system can. I'm talking a 1000 watts sound at least
posted on Feb 15, 2018, 8:04 AM 1
At that price you can get a PAIR of active quality 5" monitor speakers. And they don't come with an "assistant" that'll order a lifetime subscription to Penthouse magazine when you ask for today's weather. Is $100 of that building cost "money in the pocket" for the CEO?
posted on Feb 15, 2018, 3:14 AM 0
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