Apple Cuts HomePod Orders as Sales Continue to Disappoint

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Apple's Homepod is competing with products from Amazon, Google and Sonos, which are often sold for a lower price.

The second problem, the experts called the HomePod limited in terms of playing music, which is played only from the Apple Music app. The tech giant has been forced to admit defeat and cut orders with suppliers, according to a new report from Bloomberg.

The HomePod's weakness is that its Siri and Apple Music exclusivity make it a hard sell as a smart speaker for anyone who isn't fully invested in Apple's ecosystem. The China Times alludes to a new HomePod revision that is substantially cheaper than the current $349 entry price, presumably bringing Apple's smart speaker range into more direct competition with the budget offerings from Google and Amazon. During the pre-order period, the HomePod garnered a third of the USA smart speaker market by units sold, according to Slice Intelligence. Balanced out over the first 10 weeks of sales, HomePod only managed to gain 10 percent of the smart speaker market, as opposed to 73 percent for Amazon's Echo family of devices and 14 percent for the Google's Home speakers, with sales slipping from around a third of the market down to only four percent of the smart speaker market a mere three weeks after the launch. But after ten weeks on the market, the HomePod, priced at $349, had a 10% market share.

Veteran Apple analyst Shannon Cross says consumers assumed the HomePod would be able to do many of things the Echo and Google Home can do-answering questions, orderings pizzas and much more.

Apple has not commented on the report.

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But still, a premium acoustic experience seemingly hasn't spurred a spike in sales for Apple's astonishingly powerful smart speaker.

Apple hasn't released any sales numbers for the Homepod, and the company typically doesn't share such numbers for products other than iPhones, iPads and Macintosh computers. The overriding victor was the Amazon Echo, which made up 73 percent in that same period.

The report features the testimony of "people familiar with the matter", who seem to be part of the supply chain, manufacturing set up and Apple Store staff.

After a multi-month delay, Apple's HomePod finally hit store shelves in early February to generally rave reviews.