Rumors indicate Apple has a touchscreen-equipped HomePod (likely named ‘HomePod Touch’ or ‘HomePad’) launching early next year. But a recent report on pricing indicates Apple might repeat a mistake it made with the first HomePod.
Apple’s history of pricing missteps with HomePod
When Apple launched its first HomePod in 2018, it came with a whopping $349 price tag.
Due to the success of Amazon’s Echo products, anticipation for Apple’s smart speaker had built for years.
But that $349 HomePod was competing against Echo products that were significantly less expensive.
Full-size Echo speakers cost around $99 at the time. And you could even get the smaller Echo Dots for much less.
Consumers have generally come to expect an ‘Apple premium’ on products. But $349 compared to $99 is just far too great a difference.
Apple sought to position HomePod less as a Siri-centric device and more as a premium speaker, thus differentiating with audio quality.
But HomePod adoption no doubt suffered from that high price tag.
Apple, in a rare move, dropped the price to a slightly more palatable $299 just one year later. But the HomePod remained pretty niche until HomePod mini launched for $99.
Now, several years later, Apple’s long-anticipated HomePod with a screen is almost here. And history might repeat itself.
HomePod Touch expected to cost around $350
In a recent Bloomberg report about the HomePod Touch, Mark Gurman writes:
Apple has targeted a price of around $350 for the new device. That would be about $50 more than the full-sized HomePod, and still far above competing products from Amazon and Alphabet Inc.’s Google.
Gurman says that “people familiar with the matter” indicate Apple is trying to reduce manufacturing costs in an effort to come in lower than $350. It’s unclear whether that can happen before launch, though.
I hope they succeed, because $350 sounds like the original HomePod launch all over again—and not just because it’s the exact same price.
Amazon and Google have long offered their own smart speakers with touchscreens. They come in various sizes, but comparable products to Apple’s 7-inch HomePod Touch cost a lot less.
Amazon’s Echo Show 8 retails for $149 but is currently discounted to $99. Google’s Nest Hub is just $99 too.
Top comment by Alan Miller
This product, in today's climate, is a non-starter at anywhere near $350. We're firmly in the Apple ecosystem--in the household: iPhones, iPads, Apple TVs, multiple HomePod Minis, one HomePod (2nd Gen), Airpods Pros. We generally enjoy the Kool-Aid, clearly. But I regret outfitting our home with four HomePod Minis and one 2nd gen HomePod. The Minis sound fine for what they are, I'm a little disappointed in the 2nd gen HomePod sound--it lacks bass and punch--but FAR & AWAY the most actively infuriating aspect of them is Siri. Comprehension, usefulness, etc etc....easily the worst Apple product or feature in our lives. At this point, I wouldn't consider a HomePod Touch for above $200. I appreciate they would never price it that low, it just illustrates how much value Siri removes from that product for me. I have little confidence that AI integration will all of a sudden reverse years of wallowing in voice assistant mediocrity for Apple. We're going to remain in the ecosystem overall, so I hope it does--but I'm very lightly holding on to that hope.
Personally, I’m willing to pay a big premium for the HomePod Touch. But if Apple really wants to build a bigger, stronger Home product lineup, $350 is too much for a product that has $99 competitors.
If the HomePod Touch had a larger screen, $350 would be closer to competitors’ offerings. But 7 inches is pretty small, and I have trouble seeing the product catch on if it doesn’t hit, say, $250 or less.
Here’s hoping Gurman’s sources on the expected price are wrong. But if they’re not, I’m concerned Apple’s exciting new Home product won’t be the success the company hopes for.
What do you think of the rumored price for HomePod Touch? Let us know in the comments.
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