Apple has dropped the price of HomePod by almost $50 and you can now purchase it for $299. This smart speaker integrated with Siri earlier sold for $349 which was pretty expensive compared to the speakers from Amazon and Google. The reduction in the prices is somewhat of relief for Apple fans who didn’t want to spend big bucks for the HomePod.
Apple had been running many promotional discounts for HomePod so far, but the sales were not catching up as expected by them. However, the price cut is here to stay and it also means that there could be something to gain for the company in the coming months. Also, Apple usually does not reduce the prices suddenly and it really is mystery whether they are doing it on purpose.
Apart from this, this price cut could also be an indication that Apple will be bringing a new product or a new HomePod soon. Whatever the company is planning, they really need to gear up before Amazon or Google launch something even better. The competition in this segment is very fierce and users will always prefer to get the best experience for a reasonable price.
Early reviewers generally praised the HomePod’s sound quality and its ability to hear users from a distance thanks to its six-microphone array, but even its biggest fans admitted that the $349 price point was too high. $299 is a much more competitive offering.
As the HomePod only works natively with Apple’s own streaming service, Apple can offset lower margins on the upfront hardware purchase over the longer term by using the speaker as a proxy to encourage $9.99/mo subscriptions to Apple Music.