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With the HomePod mini, Apple gets a hit in the market for smart speakers



On Tuesday, Apple unveiled the HomePod mini, the latest addition to the HomePod family that delivers impressive sound, Siri’s intelligence to get things done and a smart home experience that provides comfort and convenience without complexity. The HomePod mini is only 3.3 inches high and is packed with innovative technologies and advanced software that together enable computing sound to deliver groundbreaking sound quality wherever it is located. The HomePod mini will be available in white and medium gray for $ 99.

The HomePod mini, the latest addition to the HomePod family, is 3.3 inches high and offers impressive sound, Siri intelligence and smart home features.
The HomePod mini, the latest addition to the HomePod family, is 3.3 inches high and offers impressive sound, Siri intelligence and smart home features.

Gene Munster for Loup Ventures:

HomePod mini has custom hardware, including the Apple S5 chip, and advanced software to deliver groundbreaking sound using computing sound.
HomePod mini has custom hardware, including the Apple S5 chip, and advanced software to deliver groundbreaking sound using computing sound.

Finally, Apple got a hit in the market for smart speakers. The previous $ 299 HomePod stuck with less than 5% US smart speaker market share, generating about $ 1B in revenue (about 0.3% of total sales) per year. For $ 99, the new HomePod mini means that Apple will have a share of this market, and the new price will be a catalyst for the company to expand its US share to about 10% over the next few years. Despite the fact that the market share is growing, the business will still be below 1% of the total income.

The importance of the HomePod mini goes beyond a price point and a product line because it illustrates something unique to Apple: the ability to seamlessly integrate hardware, software and services. This has been a long-term strategy for the company and is an example that investors should reconsider the diversity of AAPL shares. We believe that this integration is unique, justifiable and justifies a higher multiple compared to its great technological companions.

Two examples of HomePod integration include the ability to use the iPhone as a display for the HomePod mini, along with Intercom features that connect the iPhone, iPad, CarPlay and HomePod as a messaging system.

MacDailyNews Take: HomePod mini is an affordable entry into the HomePod ecosystem for many who were reluctant to take the leap with the more expensive HomePod, and is a simple and inexpensive addition for existing HomePod owners to other rooms in homes and offices.


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