Apple to launch Siri-controlled smart speaker to rival Amazon Echo and Google Home

Apple Inc. (NASDAQ:APPL) has reportedly started production of a Siri-controlled smart speaker to rival Amazoncom Inc.’s (NASDAQ:AMZN) Echo and Alphabet Inc’s (NASDAQ:GOOGL) Google Home.

The device is designed to sit in the kitchen or living room and verbally responds to basic commands and questions.

A key differentiator will be its virtual surround sound technology and integration with the rest of Apple’s products, Bloomberg reported, citing people familiar with the matter.

Amazon’s Echo and Google’s Home require users on iOS to open a dedicated app to see any further information in response to queries. This also makes it difficult for Apple users to stream music on either of the speakers.

Apple will use control of its iOS ecosystem to respond to queries on the lock screen of iPhones, iPads and Watches.

However, Apple’s speaker won’t include a touchscreen like Amazon’s latest upgraded Echo.

Apple smart speaker may boost services revenue…

The manufacturing of the speaker would plug a gap in its product line-up that has become clear of the past two years since Amazon released Echo.

Apple had hoped Apple TV would prove a successful smart home hub but it has continued to underperform.

The Apple Watch was meant to extend its Siri offering but users rarely seem to use the voice assistant, preferring the device’s notification and fitness tracking features.

Sales of the iPhone fell a near 13% in the last quarter but chief executive Tim Cook put it down to consumers holding out for the release of the next model in September.

Given the slowdown in sales, Cook has put more emphasis on Apple’s services business over the past 18 months.  The company expects service revenue to double by 2020 from last year’s US$24bn. The introduction of a speaker to give the division a boost as it will complement service products such as its subscription music streaming offering, Apple Music.

Apple to unveil plans for smart speaker as soon as next week…

Apple is expected to unveil its plans for the smart speaker as soon as Monday at the company’s developer conference. But it will not be ready to ship until later in the year.

While Apple has had a hole in its device lineup without a smart speaker, its market capitalisation is well ahead that of its rivals.

The tech giant’s valuation of about US$800bn compares to Amazon’s US$478bn and Google parent company Alphabet’s US$683bn.

Analysts expect Apple’s market valuation will top US$1trn over the next 12 to 18 months following the launch of the iPhone 8 in September. 

Story by ProactiveInvestors