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Why Apple's HomePod Is Three Years Behind Amazon's Echo (bloomberg.com)

Apple unveiled the HomePod, its first smart speaker to take on market-leading Amazon's Echo lineup of speakers, in June this year. Despite being three years late to the party, the HomePod has largely been pitched more as a speaker that sounds great instead of a device that sounds great but more importantly can also help you with daily chores. On top of this, Apple said last week it was delaying the shipment of HomePod from December this year to "early 2018." So why does a company, the market valuation of which is quickly reaching a trillion dollar, so behind its competitors? Bloomberg reports on Tuesday: Apple audio engineers had been working on an early version of the HomePod speaker for about two years in 2014 when they were blindsided by the Echo, a smart speaker from Amazon with a voice-activated assistant named Alexa. The Apple engineers jokingly accused one another of leaking details of their project to Amazon, then bought Echos so they could take them apart and see how they were put together. They quickly deemed the Echo's sound quality inferior and got back to work building a better speaker. More than two years passed. In that time Amazon's Echo became a hit with consumers impressed by Alexa's ability to answer questions, order pizzas and turn lights on and off. Meanwhile, Apple dithered over its own speaker, according to people familiar with the situation. The project was cancelled and revived several times, they said, and the device went through multiple permutations (at one point it stood 3 feet tall) as executives struggled to figure out how it would fit into the home and Apple's ecosystem of products and services. In the end, the company plowed ahead, figuring that creating a speaker would give customers another reason to stay loyal. Yet despite having all the ingredients for a serious competitor to the Echo -- including Siri and the App Store -- Apple never saw the HomePod as anything more than an accessory, like the AirPods earphones.

25 of 96 comments (clear)

  1. Because Apple is a follower, not a leader. by Anonymous Coward · · Score: 3, Interesting

    Apple's entire schtick is letting the market find great ideas, and then making those ideas appealing.

    Literally everything Apple offers stems from this business model.

    1. Re:Because Apple is a follower, not a leader. by jellomizer · · Score: 2

      But they were wireless speakers before the Echo. Apple was probably just trying to get away with a set of speakers with Siri... Amazon raised the bar on them. Which is what Apple did with the iPhone, back in 2007. Android was about to get into the smart phone market, however their idea of a smartphone for the consumer were flip phones with keyboards and bigger screens. Apple forced them them to change their model. Thus delayed Android Release in phones for a couple years.

      I never got into these smart speakers in general, so I don't see the value that they are trying to offer. But with the thousands of products that come out. Some of them Apple will lead, other ones their competitors will. Then they will all copy and perfect what each other does until they have a product of their own.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    2. Re:Because Apple is a follower, not a leader. by SQLGuru · · Score: 2

      Rolling your own doesn't come with all of the ecosystem that the existing products have. Just because you CAN doesn't mean you SHOULD. You'd be hard pressed to build something half as good as the Echo Dot or the Google Home Mini for the same price --- not even counting your time.

    3. Re:Because Apple is a follower, not a leader. by 0100010001010011 · · Score: 4, Insightful

      The difference this time is the competitor got it right.

      The iPod wouldn't have been a success if all the other MP3 players of the day didn't suck. My first 2 iPods were amazing devices. Firewire booting, I could carry a second hard drive to boot from.

      Amazon got it 'right' to consumers and Apple is playing catch up. Which is hard to do given Amazon's demographic spread compared to Apple's.

    4. Re:Because Apple is a follower, not a leader. by 0100010001010011 · · Score: 2

      Because I value my time.

      I could roll my own. Just like I could build my own ECU for my car. It's literally what I do at work. However I have no interest in spending all my free time engineering and debugging a home rolled solution.

      I do have a Home-Assistant running locally on a Pi because the store bought solutions really all suck.

    5. Re:Because Apple is a follower, not a leader. by JaredOfEuropa · · Score: 3, Interesting

      Exactly. Like the iPhone: Apple didn't invent the smartphone, they took a good idea and made it great. But it seems that Apple increasingly have a lot of trouble even just getting it "right". Some of the recent changes to the iPhone come to mind. Every change to iTunes that made an already legendary shitty product even worse. And don't get me started on HomeKit: Apple really don't seem to get home automation (hint: it's more than just remote control). With all those billions in revenue in the balance, you'd figure they would at least get the basics right when making inroads into new markets, even if they didn't manage to raise the bar like they did with the iPhone.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  2. Stuck in a profit trap by swb · · Score: 4, Insightful

    Apple make so much money from the iPhone that they don't really have a strong incentive to execute any new or innovative products. This makes it easy to waste money on side efforts like this, because, well, why bother?

    And they also get caught up in wanting it to seem "special" and not another me-too product, when, actually it really is a me-too product. Sure they can make it with Beats(tm) bass or some kind of super-duper audio which might make it seem more interesting, but that's not really particularly compelling when their customer base is already using headphones.

    Until iPhone sales start slipping badly, I don't see Apple having the motivation to do much more than bounce their profits among tax havens. Any *real* risk-taking might actually fail and thus royally piss off shareholders when it becomes a $20 billion write-off. Pissing away a half-billion or so noodling with projects like this seems like all they really need to do at this point.

    1. Re: Stuck in a profit trap by swb · · Score: 2

      It really is a similar problem. Unfortunately, if and when the iPhone crashes as a device, it will be too late for Apple and they won't be able to suddenly innovate another product like the iPhone. Just like the petrostates won't be able to invent a total new economy, either.

      IMHO, a couple of years ago Tim Cook should have convinced shareholders that either a major new product initiative was necessary even if it sucked 20% profits.

      It's unfortunate that they turned away from any kind of business or scientific computing (other than what you can do on a desktop) years ago. I think there might have been a real business niche in there for them which could have expanded into the cloud space, maybe even before "the cloud' was thing. I think networked computing could have used their user interface expertise.

      I honestly don't know where they go from the smartphone. The consumer electronics space is otherwise too crowded. A film studio? Maybe the car should still be considered a reasonable idea? Something even higher-end, like a plane or some kind of air transport? Luxury housing?

    2. Re: Stuck in a profit trap by Scott+Tracy · · Score: 2

      AR, that's where they go (and are going). Tim Cook is right, it is the next big thing, and the first one to offer a fashionable line of prescription-ready glasses wins big. And if they are able to get a modem in the glasses (which seems possible now, given what they did with Apple Watch 3) then they win even bigger. And if you doubt AR, just take a look at every person walking down the street looking down at their phones, each one of them a potential purchaser of Apple Glasses.

  3. Good marketing by Theils+Blood+Boy · · Score: 3, Informative

    People are weary of allowing some kind of spybot in their home. If it's marketed as an Audiophile device from the makers of iPod and Beats By Dre then people will buy it and get used to using the siri like functionality and they can suck consumers deeper into the apple ecosystem. So it's not a robot that listens to everything you say, it's a perfectly harmless speaker that you can control with your voice.

  4. Siri will hold it back. by Guspaz · · Score: 4, Informative

    Siri is very primitive compared to the competing virtual assistants. Don't get me wrong, I use Siri all the time, but mostly for things like starting timers or asking basic information. Both in terms of information retrieval capabilities and in terms of integrations with other services, Alexa is way ahead.

    The problem with the HomePod is that there are already good speakers with virtual assistants built in. The Echo may not have ideal sound quality, but Sonos also makes speakers with Alexa and Google built-in. As such, simply having good sound quality won't be enough for the HomePod to compete. Siri needs to get a *lot* better if they're going to have any chance.

    1. Re:Siri will hold it back. by mrwireless · · Score: 5, Interesting

      I wouldn't mind less functionality if it meant that the product is more privacy friendly.

      Currently, privacy concerns are what are keeping these devices form showing serious market growth. And rightly so.

    2. Re:Siri will hold it back. by mrwireless · · Score: 2

      Yes, and research backs that up. https://yro.slashdot.org/story...

  5. Too narrow? by Tablizer · · Score: 3, Interesting

    If Siri were designed as generic assistant technology, then it could be added to any new device with relatively minor tweaks. Maybe they overly hard-wired Siri's design to phones and tablets.

  6. Amazon can throw money at Echo by rsilvergun · · Score: 2

    because they can use it to push their store front. Apple doesn't have that so it's a tougher sell. Also they'll have a hard time competing with Echo when Amazon can give the things away and make it up from store purchases & prime membership fees.

    --
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  7. Where does it fit/ by fermion · · Score: 2
    I might get one of these eventually, but it is not going to a profit center for Apple. Google is much more in danger for not getting it's smart speaker out, because like Amazon the speaker helps monetize customers. Apple makes money directly, Google by collecting data on users, Amazon by making it easy for users to buy a lot of stuff.

    A smart speaker might encourage users to subscribe to the Apple music service. it is not going to sell Apps, it is not going to sell storage, it is not going to sell phone.

    The delay does mean most of us who adopted this technology adopted Amazon over Google. Google has play catchup as most people are not going to buy a Google product to supplement Alexa.

    People will buy the Apple product if it is a good speaker. One hole in the apple line up, BTW, now that they no longer do routers, is a cheap way to network speakers.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  8. SONOS by LynnwoodRooster · · Score: 3, Interesting

    Apple, just freaking buy them already. You'd have an instant 10+ million consumers, ecosystem with much better audio than Amazon, Google, or Microsoft - and can build up as you want. Crack open the checkbook, Tim, and write out a $3 billion check. And it's yours.

    --
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    1. Re:SONOS by thegarbz · · Score: 5, Funny

      Apple isn't interested in high-end audio. That's why they bought Beats.

  9. Re:Talk about phoning it in. by SQLGuru · · Score: 3

    The biggest reasons?

    The Echo/Google Home work for anyone in the room --- even your parents or guests.

    The Echo/Google Home doesn't need to be unlocked or swiped or long-pressed or what have you. I don't want my phone in a normally unlocked state -- even when I'm at home or any other "convenient" location. And "OK, Google" doesn't work unless your phone is unlocked.

    Those are the two main reasons that I'm interested in one of those devices vs using my phone.

  10. Audiophile Earbuds... by geekmux · · Score: 2

    "Apple audio engineers...quickly deemed the Echo's sound quality inferior and got back to work building a better speaker."

    Inferior?

    I take it Apple audio engineers have not actually used a pair of their own shitty earbuds...

  11. Re:Talk about phoning it in. by SQLGuru · · Score: 2

    Urban legend......

    https://www.wired.com/story/al...

    This could not have happened as described. Amazonâ(TM)s Echo requires a "wake word" to activate; the default is âoeAlexa,â but you can also customize it to âoeEcho,â âoeAmazon,â or âoeComputer.â And while they can make calls, an Alexa-powered device can only call another Alexa-powered device. Not only that, but it can only call other Alexa devices that have enabled calling, and have been added to your contact list. Most importantly, these exchanges don't take place over the public switched telephone network, the worldwide network that allows wireless or land phones to actually make calls.

  12. An Apple products 2 years behind others ? by denisbergeron · · Score: 2

    Is there a Apple product that aren't 2 years behind any other product ?

    --
    Ceci n'est pas une Signature !
  13. Re:Talk about phoning it in. by JaredOfEuropa · · Score: 2

    Finally someone gets it. Voice activation works well for short interactions where unlocking your phone and starting the right app is already too much bother. In this case, Echo works pretty well in a home automation setup. My main niggle is that the Echoes aren't location aware... if I say "lights on", it should turn on the lights in whichever room I am in. Currently I'm stuck with having to define separate commands for each room.

    --
    If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  14. Re:Loyal?! by Anonymous Coward · · Score: 2, Insightful

    You are not the target market they're aiming for.

    The target market they're aiming for doesn't care about a few thousand dollars (or even if they do, are willing to pony it up), or even the performance crown...

  15. Different business models by 91degrees · · Score: 2

    as executives struggled to figure out how it would fit into the home and Apple's ecosystem of products and services

    This illustrates the problem perfectly.

    Amazon have a business model of selling lots of inexpensive products and services (including a music service geared to streaming). Alexa makes this easier. Amazon don't care if it's not perfect. It doesn't even need to be all that profitable in itself. It just needs to sell these other srervices.

    Apple sell to people who care about quality (or at least think they do). They will only sell one item every year or two, but that's their core business. iTunes is a sideline that promotes hardware sales. They need to make the device itself profitable. They need to persuade iPad and iPhone users to buy one of these in addition to an iPad and iPhone, Why would you do that rather than get a docking station?