★ Google Announces Larger and Smaller Home Devices, New Software Features (Oct 4, 2017)
Google today announced both larger and smaller versions of its Google Home device, while adding software features to its existing hardware, as part of its second generation hardware launch event in San Francisco (see here for my comment on the Pixel 2 smartphones it also announced). It’s a busy time for voice speaker announcements, coming a week after Amazon’s big update of its Echo line, and the same day as Sonos’s voice speaker launch, but we now have a much clearer picture of how the lineups of major vendors will be positioned to finish out the year and going into next year.
Amazon has a pretty mature product line now, but still no direct entry in the premium audio space, a segment it seems willing for now to cede to partners and competitors. Apple is entirely focused on the high end market, with its HomePod priced at $349 and coming in December, while Sonos is trying to find a niche between these two markets with its $200 Sonos One speaker and a neutral approach to voice assistant and music ecosystems. Lastly, we now have Google pursuing a good, better, best strategy like Amazon, but with its best much more focused on premium audio than Amazon’s new Echo Plus, which seems more geared towards smart home support and costs far less.
It’s fascinating to see Google come in above Apple in its pricing for the Google Home Max, at $400, suggesting it’s not going to be dragged down the pricing slide with Amazon but wants to make real margin on its products in the category. Given how much complaining I’ve seen about Apple pricing itself out of the voice speaker market, this new announcement certainly adds an interesting wrinkle. Of course, Google is also providing a cheaper speaker at $50 to compete more directly with the Echo Dot from Amazon, and is smartly focusing there as in its core Google Home product on design which will fit much better (and more subtly) in a home environment. Google should take significantly more share than it did last year with this new range of devices, especially the Mini, and it already took decent share with the first generation products. All in all, this is a great set of announcements from Google that should do pretty well, with the possibility of more to come in the speaker-with-screen segment early next year.
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