Apple is set to announce the iPhone 12 during its Oct. 13 digital event[1]. Given the event's "Hi, Speed." tagline and abundance of rumors, everyone expects a 5G iPhone. While Apple's first 5G phone will certainly be the star of the show, I'm much more interested in one of the other possible announcements, an updated HomePod[2] and a rumored $99 HomePod 'Mini'[3]. Why? Because our phones may be the gateway to us as individuals, but voice-enabled smart devices (like the HomePod) and the data-driven networks behind them are the gateway to our homes.
Smart devices and voice will be as revolutionary as the smartphone
Don't get me wrong, I'm not saying the HomePod will make up more of Apple's revenue than the iPhone any time soon. According to AAPL's fiscal Q3 2020 Consolidated Financial Statements[4], the iPhone accounts for 4 times the revenue of the entire wearables, home and accessories category (of which the HomePod is no doubt a part):
- $26.418 billion - iPhone
- $13.156 billion - Services
- $7.078 billion - Mac
- $6.582 billion - iPad
- $6.450 billion - Wearables, Home, and Accessories
Yet, the proliferation of smart devices and the internet of things (IoT) will transform our world as much, if not more than the smartphone.
First, the market for smart and IoT devices, already rivals the phone market in shear size. According to GSMA's "The Mobile Economy 2020"[5] report, the were 5.2 billion smartphone connections in 2019. According to the same report, there were 12.0 billion total IoT connections the same year...over twice as many. The smart speaker market is still a small part of the overall IoT market, but it is growing.
In 2019, Forrester