Apple sells around 600000 HomePods in the first quarter

Apple sells around 600000 HomePods in the first quarter

As per the report, while Amazon shipped an impressive 4 million units in the first quarter of 2018, which is double the amount of speakers it shipped previous year, its market share fell from 81.8 per cent in 2017 to 43.6 per cent in 2018. Apple now holds 6 percent of the market share, falling behind Alibaba by a small margin. Meanwhile, Alphabet's (GOOG) Google market share stood at 26.5%, up from 12.4%, while Alibaba (BABA), the Chinese e-commerce leader gained market share of 7.6% in its first year with a device on the market.

The smart speaker market is heating up as the companies are focusing a lot on this segment. Though Amazon doubled up on shipments, its market share fell from 81.8 per cent to 43.6 per cent as Google began to muscle in on Amazon's parade, while several other smart speakers emerged.

Competition heats up in the smart speaker market.

According to latest quarterly research from Strategy Analytics, the global smart speaker shipments have reached 9.2 million units in Q1 2018. That's a massive increase from the same period last year, where Google only sold 0.3 million units (709% growth year-over-year). Last month reports surfaced that lackluster demand for the speaker has resulted in Apple reducing orders with at least one manufacturer and lowering its internal forecasts. Despite seeing its share drop below 50 percent, Amazon still tops the table having sold 4 million units during the first quarter. That means the HomePod now only has a 6% smart speaker market share.

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Google and Alibaba consolidated their number two and three rankings while Apple became the fourth largest smart speaker brand worldwide following the launch of the HomePod in February 2018.

"Alibaba and Xiaomi are leading the way in China and their strength in the domestic market alone is proving enough to propel them into the global top five", Watkins was quoted as saying.

Today's smart speakers are by no means the finished article but they have captured the consumer imagination. Rumor has it that Apple may develop a cheaper, smaller HomePod to compete directly with the standard Amazon Echo and Google Home.