In a significant win for Alphabet (GOOG 1.88%) (GOOGL 1.84%) subsidiary Google, its Home Mini smart speaker ranked as the most popular smart speaker in the second quarter, according to new estimates from Strategy Analytics. The search giant's diminutive device barely beat out Amazon.com's (AMZN 0.18%) Echo Dot. Strategy Analytics had already previously released its estimates on how the smart speaker market fared in the second quarter, reporting that the market tripled to 11.7 million units, but today's assessment breaks down how well specific models sold during the quarter.
Unsurprisingly, the most affordable models offered by Google and Amazon represented nearly 40% of all unit volumes.
Google Home family. Image source: Google.
Affordable smart speakers are driving significant volumes
Strategy Analytics estimates that Google shipped 2.3 million Home Mini units, just a hair ahead of the 2.2 million Echo Dot units that Amazon shipped. Both devices sell for $50, before considering the occasional promotion. Here are the top five smart speaker models:
|
Model |
Q2 2018 Units |
Q2 2018 Market Share |
|---|---|---|
|
Google Home Mini |
2.3 million |
20% |
|
Amazon Echo Dot |
2.2 million |
18% |
|
Amazon Echo |
1.4 million |
12% |
|
Alibaba Tmall Genie |
800,000 |
7% |
|
Google Home |
800,000 |
7% |
Data source: Strategy Analytics.
With their low prices, Home Mini and Echo Dot grabbed a combined 17% revenue share. In contrast, Apple's (AAPL 0.10%) HomePod grabbed 6% unit share -- or approximately 700,000 units -- but 16% revenue share. The Mac maker is already taking over the premium end of the market, with an estimated 70% share of smart speakers priced at $200 or more, according to Strategy Analytics' David Watkins.
When you cross-reference the numbers above with Strategy Analytics' prior figures, Home Mini represented over 70% of Google's total 3.2 million in smart speaker volumes, while Echo Dot comprised nearly half of Amazon's 4.8 million total units. With more and more products being introduced into the booming market, consumers will have a growing array of smart speakers to choose from across the pricing spectrum, which bodes well for adoption.
The strong performance of affordable smart speakers underscores how important it is for Apple to release the "HomePod Mini" that it is reportedly working on. It's unlikely that Apple would ever try to compete at the $50 price point, but $350 for the current HomePod is a fairly steep price when compared to the competition. Rosenblatt analyst Jun Zhang believes that Apple will ultimately price the smaller version at $150 to $200.
