Smart Speaker sales in US soar in holiday season

One third of users own more than one device

12/02/2019

SOURCE: CIRP – Chart 1: Smart speaker installed base (millions of units)

Smart Speaker sales in US soar in holiday season with one third of users owning more than one device, according to investment research company Consumer Intelligence Research Partners (CIRP). Sales figures were compiled on Amazon Echo, Google Home and the Apple HomePod for purchasers in the quarter ending 31^st December 2018.

CIRP analysis indicates that the US installed base of smart speaker devices is 66 million units, up from 53 million in the September 2018 quarter and 36 million units in the December 2017 quarter (See Chart 1). Amazon Echo has 70% of the installed base, with Google Home at 24% and Apple HomePod at 6%.

“Holiday shoppers helped the smart speaker market take off again,” said Josh Lowitz, Partner and Co-Founder of CIRP. “Relative market shares have remained fairly stable, with Amazon Echo, Google Home, and Apple HomePod accounting for consistent shares over the past few quarters. Amazon and Google both have broad model lineups, ranging from basic to high-end, with even more variants from Amazon. Apple of course has only its premium-priced HomePod, and likely won’t gain significant share until it offers an entry-level product closer to Echo Dot and Home mini.”

The number of owners with more than one smart speaker increased significantly in the past year with 35% of owners of all smart speakers having more than one at year end compared to 18% a year ago.

“Amazon and Google have succeeded in selling multiple units to a single household,” said Mike Levin, Partner and Co-Founder of CIRP. “Their strategies appear to include persuading owners to use smart speakers in multiple rooms, which helps create more active usage of the voice platform. And, Google has mostly caught up to Amazon in this strategy. A year ago, almost twice the percentage of Amazon Echo users had multiple units as Google Home users. Now, about one-third of both Amazon Echo and Google Home users have multiple units.”

SOURCE: CIRP – Number of smart speakers owned

CIRP based its findings on its survey of 500 US owners of Amazon Echo, Google Home, and Apple HomePod, surveyed from 1^st to 11^th January 2019 who owned one of these devices as of 31^st December 2018.

For further information on CIRP, which provides securities research to the investment community using advanced consumer market research strategies, methods, and techniques go here.