Apple probably makes less profit on the HomePod than Google and Amazon do on their speakers (AAPL, AMZN, GOOG)

Lucy Nicholson/Reuters

• Apple’s smart speaker, the HomePod, has gone on sale in the US for $ 349 (£319 in the UK) last week.
• Analysts at TechInsight have calculated that it costs Apple $ 216 to build a HomePod, and estimated the company makes a ~38% profit.
• That would be much less than the reported profit Google and Amazon make from their own smart speakers, Home and Echo, which respectively generate an estimated 66% and 56%.

Apple began selling its HomePod smart speaker last week and, between mixed reviews and a furniture staining issue, it hasn’t been the company’s smoothest launch.

Now it turns out Apple might not even be making that much money on the speakers. A new report from analyst firm TechInsight, which we saw via Bloomberg, has shed some light on the HomePod’s value, which apparently costs Apple about $ 216 (£153) to manufacture. Apple sells the device for $ 349 in the US, which results in a 38% profit cut. 

See the rest of the story at Business Insider

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