Beijing time on November 14, the morning of November 14, market research company Canalys released a new report shows that the third quarter of 2019, the global smart speaker market grew by 44.9%. Thanks to various promotions, Amazon is the world’s top-ranked with 10.4 million units.
Alibaba has regained the top spot in the Chinese market, the second-largest in the world. Google slipped from third place to fourth place in the second quarter as Google upgraded its Nest brand.
Open retail channels, which often offer promotions and discounts, make it increasingly difficult for smart speaker vendors to stimulate sales. “Amazon has launched the ‘Echo Upgrade Program’, which attracts users to swap out old Echo or non-Echo Bluetooth speakers to further increase the popularity of Echo devices in the home,” said Jason Low, senior analyst at Canalys. “
“The challenging retail environment and declining shipments have forced Google to seek partnerships with more companies, including Spotify, to drive sales through different channels. In China, we have seen a similar trend of collaboration, with Alibaba using its retail relationships and channel capabilities to partner with local and international companies such as Starbucks, Budweiser, Abbott and Oreo. “
In the third quarter of 2019, global sales of smart displays increased by 500% to 6.3 million units, making it an important category. The Echo Show 5 smart display contributed significantly to Amazon’s success in the third quarter, accounting for 16% of Amazon’s overall global shipments and being the best smart display of any brand. Cynthia Chen, research analyst at Canalys, said, “While smart displays are becoming increasingly important in a manufacturer’s strategy, consumer price sensitivity and practical use cases remain key challenges that need to be addressed.”
“Low-cost devices are an important driver of smart display growth, and competition is expected to be intense ahead of the fourth-quarter shopping season. The key is to avoid getting bogged down in the sinking cost fallacy, especially for Chinese manufacturers. So they have to stop wasting money to meet their shipment targets, focusing on their overall business goals and generating revenue as quickly as possible.