Apple cuts orders of HomePod on weak demand

No Echo here! Apple cuts Home Pod orders after sales prove to be lackluster

Due to these low sales, Apple has lowered its sales forecasts and cut manufacturing orders, according to the report.

Retailer inventories have shown a "piling up" of the device, with some stores selling less than ten units a day.

Three weeks after the launch, weekly HomePod sales slipped to about 4 percent of the smart speaker category on average, the market research firm says.

With that said, reviews of the HomePod's sound quality have been overwhelmingly positive, with even audiophiles conceding that the device delivers incredible sound, a feat made all the more impressive given the speaker's relatively small footprint.

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According to Bloomberg's sources, Apple has long viewed HomePod as a speaker first and internally viewed the device as an accessory that would work with other Apple products rather than a standalone product. Yet Siri's inability to rival Amazon's Alexa and Google's Assistant in practicality, including answering questions or ordering food, has placed HomePod at a competitive disadvantage relative to less expensive smart speakers. Following strong pre-order numbers, Apple is reportedly facing problems with selling the HomePod. That's a serious disincentive, Cross says, when the Apple speaker costs $200 more than most smart speakers. Instead the HomePod is mostly limited to playing tunes from Apple Music, controlling a limited number of Apple-optimized smart home appliances and sending messages through an iPhone.

AppleInsider's reporter Daniel Dilger posted a report today challenging the data from Slice Intelligence wherein he noted that "Apple has repeatedly challenged analysts and reporters for sensationalizing rumors of channel checks and trying to extrapolate simplistic conclusions from rumors of channel data involving a specific vendor".

Gene Munster, a co-founder of Loup Ventures and a long-time Apple watcher, expects HomePod sales to pick up in the holiday shopping season. The HomePod is said to go on sale in December during the holiday shopping season but unfortunately delayed on a year ago. Amazon, however, is on pace to sell 29 million Echos this year and 39 million in 2019, he told Bloomberg. Alphabet, he estimates, will move 18 million Google Homes in 2018 and about 32 million the following year. Not every Apple product was a hit out of the gate. That's the main takeaway from a new report about the company's smart speaker.

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