According to TechInsights, given HomePod's price of $ 349, the cost price of $ 216 shows Apple's profit margin of about 38%. According to TechInsights estimates, the profit margins of the mainstream smart speakers Google Home and Amazon Echo on the market were 66%, and 56%. Other products are more competitive, but have lower audio quality than Apple's HomePod.
Al Cowsky, a cost analyst at TechInsight, said: "Apple is squeezing their margins to be bigger and stronger, and to do that, I suspect they've deliberately lowered their prices in order to go big."
According to IHS Markit's material disassembly, the profitability of Apple's flagship handset, the iPhone X, is 64%, which IHS estimates starts at $ 349 for Apple Watch since 2015 and costs about $ 84 for raw materials.
Unlike its competitors, the Apple HomePod is widely acclaimed for its superior audio quality, but it has also caused industry criticism due to many issues with its integration with Siri digital audio assistants and external application compatibility. Competitors Amazon Like Google, Apple hopes HomePod will bundle consumers with their music subscription service.
Much of HomePod's costs come from its internal speaker technology, including microphones, tweeters, subwoofer and power management components, which cost about $ 58 and the other $ 60 mainly includes expenses for various widgets such as Siri Animation display system.
HomePod's processor A8 chip is estimated to cost $ 25.50 while the form factor and other items cost $ 25. TechInsights also estimates manufacturing, test and packaging costs together for about $ 17.50.
Apple did not respond to HomePod material analysis, Apple Chief Executive Tim Cook said in a 2015 earnings call that there has always been a far cry from the cost analysis of Apple products.