This article is produced by NetEase Smart Studio (public number smartman 163). Focus on AI and read the next big era! NetEase Smart News, January 5 – During the holiday shopping season, Amazon and Google have significantly cut prices on their smart home speakers. Despite the fact that they are likely losing money on each unit sold, this move signals a major challenge for Apple as it prepares to launch its own smart speaker, the HomePod. Amazon’s Echo Dot and Google’s Home Mini both saw price drops from $50 to $29 during the U.S. holiday season. The mid-range versions of these devices cost more than double the mini models. Analysts believe that the sales of these budget-friendly models have led to significant losses for both companies. According to ABI Research, the component cost of an Echo Dot is around $31, while the Google Home Mini costs about $26 in parts. These figures don’t include overheads like management fees or shipping, meaning both companies might be selling at a loss. Adam Wright, a senior analyst at IDC, said, “Apple has been struggling for some time.†He estimates that global smart speaker sales reached about 35 million units before the Christmas season. Wright added, “We’ve seen explosive growth in smart speakers over the past six months.†Apple initially tried to release the $349 HomePod in 2017 but delayed it until early 2018. Analysts believe Apple aims to make the device profitable while also promoting its Apple Music subscription service, which costs $9.99 per month. Siri, Apple's voice assistant, is expected to recommend new songs and enhance user engagement. Meanwhile, Amazon and Google are using low prices to attract consumers to their digital assistants, Alexa and Google Assistant. By offering cheap devices, they aim to lock users into their ecosystems and later profit from data and future purchases. Although the Home Mini and Echo Dot can't match the sound quality of the HomePod, some consumers may feel that a basic smart speaker is sufficient. Even during the holidays, mid-range models dropped to $79, making them highly competitive in the market. Paul Erickson, a senior analyst at IHS Markit, said, “This pricing is good for consumers, but it’s bad news for Apple.†Some buyers might see a $30 smart speaker as affordable enough to use without needing to upgrade to a pricier model. Amazon declined to comment on Echo products, but last week, it stated that the Echo Dot is the most popular product used by Prime members with Alexa. Google did not release specific sales numbers for the Home Mini, but a spokesperson, Nicol Addison, said the company was pleased with the holiday performance. Google also offered the Home Mini at a discounted price of $29 to Walmart, Target, and Best Buy for new Pixel 2 customers. Stay tuned to the NetEase Smart public account (smartman163) for the latest updates on the artificial intelligence industry. A Perkins diesel generator set refers to a generator that is powered by a Perkins diesel engine. Perkins is a well-known and reputable brand that specializes in manufacturing diesel engines for various applications, including power generation. Perkins Diesel Generator Set,Oil Generator Set,Perkins Diesel Generator Set 125Kva,Perfect Diesel Generator Set 1800Rpm Grandwatt Electric Corp. , https://www.grandwattelectric.com
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