Due to global competitors entering the market, Amazon’s global market share in smart speakers dropped below 50%, according to a recent report by Strategy Analytics, a consulting service provider in emerging technology and digital fields.
The report showed that global smart speaker shipments reached 9.2 million units in Q1 2018. Among that, Amazon and Google accounted for 70% share of global smart speaker shipments, with Amazon for 43.6% and Google for 26.5%.
Strategy Analytics estimated that Amazon shipped 4 million smart speakers during the quarter. It’s still the market leader in the category, but its share has been decreased from the previous year due to the rising competition.
Google and Amazon had together 84% market share in Q4 2017 and 94% in the year ago quarter.
“This is partly as a result of strong growth in the Chinese market for smart speakers where both Amazon and Google are currently absent,” said David Watkins, the director at Strategy Analytics, in a statement.
Alibaba and Xiaomi individually took 7.6% and 2.4% share of global smart speaker shipments in Q1 2018. It presented the strong adoption in the Chinese market for smart speakers.
Apple launched its smart speaker, the HomePod in February. According to the report, the company has become the fourth biggest brand in the smart speaker market, with shipments of 600,000 units (6%).
“Today’s smart speakers are by no means the finished article but they have captured the consumer imagination and we will see rapid evolution in design, functionality and associated use cases over the coming years,” said David Mercer, the vice president at Strategy Analytics, in a statement.
“We are clearly heading towards to a time in the not too distant future when voice becomes a standard mode of technology interaction alongside established approaches like keyboards, mouse and touchscreen.”