The smart speaker market begins to shift from the early stage to the mass market

The market's adoption rate of smart speakers continues to exceed expectations, and there are clear signs that the market has begun to shift from the early stage to the mass market. In addition, due to Alibaba, Xiaomi, JD’s significant price cuts and promotional activities on Double Eleven, and the much-anticipated launch of Baidu’s first Duer OS speaker, China’s smart speaker market will have an excellent performance in the fourth quarter.

The key findings in the 2017 Q3 smart speaker quarterly report recently released by Strategy Analytics include:

· In Q3 2017, North America dominated the smart speaker market with a 75% sales share, although Western Europe and Asia Pacific will weaken their sales share in Q4.

The launch of Google Home in many countries and regions has stimulated the growth of Google Assistant, causing Amazon's Alexa AI operating system market share to drop from 80% in the first half of 2017 to 69% in Q3 2017. More sales countries and the launch of new models will drive the total global sales of Google Home and Amazon Echo to 12 million units in the last quarter of 2017.

· The launch of new smart speakers by Alibaba and Xiaomi, as well as JD Dingdong speakers, which have been ranked number one in China in Q3, promoted the Chinese market to begin to show growth momentum in Q3 2017.

The smart speaker market begins to shift from the early stage to the mass market

David Watkins, Director of New Smart Speaker Services at Strategy AnalyTIcs commented: “With the addition of new manufacturers such as Harman Kardon, Sony and Sonos, the smart speaker market is becoming increasingly competitive, and these manufacturers have higher quality audio than Amazon or Google. In response, Silicon Valley giants such as Google and Amazon have improved the audio quality of their flagship products, but their real competitive advantage lies in the ability to sell a large number of extremely price-competitive Echo Dot and Google Home Mini, making them far ahead in the foreseeable future Than competitors."

"The competitive landscape will further heat up in 2018. We will see the launch of third-party devices that support Alexa or/and Google's intelligent voice AI platform. All these activities will of course bring greater pressure to Apple-Apple The Siri HomePod smart speaker was not launched in time for the Christmas season, and it will be unveiled in 2018. Apple is starting to lag behind Amazon and Google in the field of AI and virtual assistants, and its commendable hardware innovation capabilities may not be enough to counter its competition The opponent’s rapid AI software innovation."

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