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Apple Gains Market Share in the Smart Speaker Market

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Amazon leads the smart speaker market

As we can see in the table below, Strategy Analytics expects the global smart speaker market to reach 11.7 million units in the second quarter. This market has grown 203.0% YoY (year-over-year) from 3.9 million units in the second quarter of 2017.

Amazon (AMZN) led the smart speaker market in the second quarter with a share of 41.0% and shipment growth of 64.0% YoY. Its market share declined significantly from 75.8% in the second quarter of 2017, driven by an increase in competition.

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New players in the smart speaker space

The global smart speaker market has attracted several tech giants such as Apple (AAPL), Alibaba (BABA), and JD.com (JD). Unit shipments for Google (GOOG) rose 420.0% YoY to 3.2 million units while JD.com saw a significant rise of 541.0% in this segment.

Apple started selling its HomePod around six months ago. It currently has a share of ~5.9% and shipments of 700,000 units. While Amazon and Google accounted for ~92.0% of the smart speaker market in the second quarter of 2017, their combined market share fell to 68.6% this year.

It seems that Google and Amazon are struggling to fight against China’s domestic giants. According to Strategy Analytics, “Apple has established an early lead in the premium smart speaker market, benefiting from a fiercely loyal fan base and strong momentum behind its Apple Music service.”

Apple has doubled its HomePod market availability to half a dozen countries, a move that could help it better compete with Amazon and Google in the smart speaker industry.

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