Apple is reportedly planning a more cost friendly smart speaker as an alternative to its HomePod speaker. The speaker is also said to be using the Beats branding instead of being linked to the HomePod.
Taiwanese supply chain sources claim that Apple is targeting a price of around $199 for the upcoming smart speaker. If this is true then it will definitely be an entry-level model to Apple’s smart speaker platform. Compared to Apple’s only other smart speaker, this is a much lower price than the HomePod which retails at $349.
Apple is also allegedly in talks with MediaTek to supply the chips for the speaker. The HomePod is using Apple’s in-house A8 SoC to power the speaker. Apple’s decision to use MediaTek chips is probably to reduce the cost to build the speaker.
Recent reports claim that the HomePod is not selling as well as its rivals from Google and Amazon. With the development of a more affordable smart speaker, it seems like Apple is betting on the affordable price point to drive sales of its upcoming smart speaker.