Why Apple Needs a HomePod Mini

One of the most important markets for the tech industry is the connected home, from smart thermostats and lights to security cameras and app-connected door locks.

I first wrote about the connected home in 2004; I saw its potential but was concerned about whether these devices had enough processing power and whether our networks could handle all that data.

Back then, we did not have smartphones, smart speakers, or standardized wireless protocols that could make the smart home a reality. But I knew the technology would evolve to allow for internet-connected devices, which would most likely connect to a central hub.

Initially, I thought the TV would serve as that hub. At the time, Creative Strategies was working with a semiconductor company that specialized in television processors and envisioned a smarter TV. Fast forward to 2018, and TVs are indeed smarter but don't really serve as the home's smart hub. It's clear now that smart speakers fill that role. With a voice interface, connectivity, and placement in kitchens and dens, they are the best way to interact with and control in-home smart devices.

The chart above only shows the smart speaker market before Apple entered it, so there's a lot of room to grow this market in the US.

The chart below highlights pricing; Apple has some real headwinds when it comes to the HomePod's ability to gain market share. However, if Apple can sell a projected 5-6 million in calendar 2018, it could end the year making the most money and profit in this market segment.

In my home, I've been using Amazon's Echo and Echo Dot, the Google Home Mini ($39.99 at Best Buy) , and Apple's new HomePod for getting information, playing music on demand, ordering stuff online, and controlling lights and other connected devices around the house.

By far, the best device I have is Apple's HomePod ($299.00 at Apple.com) for its superior sound quality and ease of use with compatible devices; I have also found Siri surprisingly accurate. But the Echo Dot and Home Mini are no slouches either.

Going forward, Apple needs to follow what its rivals have done and create a mini HomePod, so digital assistants can follow customers around the home. In my house, I have smart speakers in my bedroom, study, and even the master bathroom.

Apple could stand out with high-quality speakers in a HomePod Mini. I'd be willing to pay $99 for a HomePod Mini if the speaker quality was at least four times better than what's on Echo Dot and Home Mini.

The battle to control the smart home will go through the smart speaker. But it starts with the quality and functionality of the smart speaker and the accuracy of its intelligence and controlling functions. The smart speaker is much more that an intelligent speaker. It's on track to become the home's central controller.

Apple HomePod Review