Analysts see uphill climb for Apple HomePod as Amazon and Google rule smart speaker market
2017 was the first year that smart speakers became extremely popular as Christmas and Chanukah gifts. Amazon, who created the category in 2015 with the Amazon Echo, has a huge lead in market share over Google and its Google Home series. This past holiday shopping season saw both Amazon and Google fight over market share by cutting the price on their low-end smart speaker. Combined, both firms have a large lead in smart speaker market share. During the holidays, the Amazon Echo Dot and the Google Home Mini were both priced at $29. Both were about $50 prior to the sale. Amazon's cost to produce the Echo Dot is roughly $31 a unit according to ABI Research. And while it takes only $26 to build the Google Home Mini, the $3 gross profit was eaten up by overhead, shipping and other costs. That means that both Amazon and Google took a little hit to the bottom line, just to try and increase their smart speaker market share. A fight for market share could be bad for Apple, w