More affordable smart speaker planned under Beats brand

May 21, 2018 07:02 GMT  ·  By

Apple’s HomePod hasn’t been exactly a hit so far, but it looks like the company isn’t wiling to give up on the smart speaker market so fast.

Instead, what it plans to do is launch a more affordable device under the Beats brand in order to compete against the likes of Google and Amazon.

A report from LoveIOS indicates via sources from the Taiwan supply chain that Apple wants to launch a $199 smart speaker, though for the time being neither a release date nor a spec sheet is available.

What we do know, however, is that Apple plans to use the Beats brand in order to avoid associating a cheaper product with the Apple name, which is more or less odd given that Beats itself offers premium products as well.

Disappointing sales performance so far

But on the other hand, it’s believed that a more affordable Beats smart speaker would make sense for Apple because this particular brand already has the know-how to build high-quality devices. At the same time, having two smart speakers being sold under different brands means that Apple HomePod and the Beats model wouldn’t cannibalize each other.

In the meantime, however, Apple must find a way to make its HomePod a successful product, as sales estimates have until now pointed to performance that’s well behind expectations.

Strategy Analytics said that Apple sold only 600,000 HomePod units out of a total of 9.2 million smart speakers shipped in the first quarter. Amazon’s Alexa was the top product with a total market share of 43.6 percent, while Google Assistant was the runner up with 26.5%. Apple was far behind with just 6%.

In addition to a cheaper smart speaker, Apple is also believed to be working on a cheaper iPhone. This time, the debut should happen in the fall alongside the 2018 iPhone generation, and this model could come with a 6.1-inch LCD display. The feature lineup, however, may not include a dual-camera system, 3D Touch, and wireless charging, though Face ID is very likely.