“Alexa is a competitor to Siri. Apple made an attempt to take on the Echo with its own HomePod speaker, so quickly partnering with Amazon felt like an admission by Apple that it can’t generate the kind of momentum in the home that Alexa has captured”https://www.cnbc.com/2019/01/09/apple-walled-garden-starting-to-show-cracks.html …
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Replying to @BrianRoemmele
I think it as the right strategy but the timing is odd. They appear to be keeping their vertical strategy with their unique services but expanding their horizontal strategy with commodity services, such as video and music.
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Replying to @jdanielcook
Daniel, Indeed. It is important to understand that Apple Music streaming service is a net loss to Apple. Every song that is played is a residual paid to the artist. Thus if one were to pay $9-$14 per month and use Apple Music aggressively and not buy an Apple device = Big Loss.
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Replying to @BrianRoemmele @jdanielcook
I don’t think an echo buyer is a HomePod buyer. They are not the same market.
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Replying to @sanatpatel @BrianRoemmele
I would like to buy a HomePod and I think many Apple users would at ~$99. Even though Siri isn't as good the ecosystem is worth the $$. How does Homekit fit in? Isn't it a net loss for Apple?
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Daniel, this is a sweet spot for price. I fully agree. This could be justified on an Apple Services expansion concept keeping more folks in Apple Only hardware and services. Giving up this early is very unlike Apple.
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