Apple‘s (AAPL) HomePod intelligent orator is off to a delayed start, a span of equity analysts pronounced Friday.
The $349 HomePod went on sale Feb. 9. The voice-activated, Siri-enabled device is positioned as a reward orator for users of a Apple Music subscription streaming service.
By contrast, less-expensive intelligent speakers from Amazon (AMZN) and Alphabet‘s (GOOGL) Google are designed to act as digital butlers. They answer oral queries about a news, weather, sports and other topics, as good as play song and control connected home inclination like lighting and thermostats.
Rosenblatt Securities researcher Jun Zhang slashed his HomePod prolongation estimates to 3 million from 6 million units “since we have seen weaker-than-expected sales.”
Apple is formulation a lower-cost HomePod to improved contest with Amazon Echo and Google Home speakers, he said. Zhang expects a cheaper HomePod to launch after this year in time for a holiday selling season.
Zhang rates Apple batch as buy with a cost aim of 180.
Apple shares fell 0.4% to tighten during 178.02 on a stock marketplace today. Apple batch strike an all-time high of 183.50 on Tuesday.
Barclays researcher Mark Moskowitz reiterated his neutral rating on Apple stock, though lowered his cost aim to 168 from 170 after visiting a organisation of Asian supply sequence companies.
“Several attention participants prove that initial direct for Apple’s HomePod has been weaker than expected,” Moskowitz pronounced in a report. “The supply sequence has gifted sequence cuts from strange devise of 6 million to 7 million units.”
He added, “While we consider financier expectations are low for a initial iteration of a company’s late-to-market home assistant, a slower start could amplify a need to deposit (in) some-more product or services growth over only following a early movers, either in song streaming, digital home assistants, and media content.”
Meanwhile, iPhone X and iPhone 8 array direct continues to be soft, he said. On a and side, a lower-price iPhone 7 is tracking improved than expected, Moskowitz said.