Baidu Replaces Google to Become Number Two in Smart Speaker Market in 2Q19
August 26, 2019 | CanalysEstimated reading time: 2 minutes
The global smart speaker market grew 55.4% in Q2 2019 to reach 26.1 million units. Amazon maintained the worldwide lead by shipping 6.6 million units of Echo smart speakers. Baidu, despite only serving the China market, grew 3700% to reach 4.5 million units in Q2 2019, after it reentered the market with Xiaodu devices in Q2 of last year. Baidu became the second largest vendor and overtook Google which shipped 4.3 million in the same quarter. China's smart speaker market performance outshone others as the country doubled its quarterly shipment size to 12.6 million units, more than twice as large as the US market which stands at 6.1 million units.
For Baidu to replace Google to become the world’s second largest smart speaker vendor is no small feat, but bears little significance as both companies operate in mutually exclusive markets. “Aggressive marketing and go-to-market campaigns built strong momentum for Baidu in China. The vendor stood out as a key driver of smart displays, to achieve 45% smart display product mix in its Q2 shipments,” said Canalys Research Analyst Cynthia Chen. “Local network operator’s interests on the device category soared recently. This bodes well for Baidu as it faces little competition in the smart display category, allowing the company to dominate in the operator channel.”
The US market showed slight weakness, declining 2.4% with a total of 6.1 million units shipped. “Amazon and Google are focused on growing their business outside the US,” said Canalys Senior Analyst Jason Low. “Google’s transition to the Nest branding while pivoting to smart displays proved to be a challenge, especially as it has begun rolling out its Nest Hub smart display globally. Google urgently requires a revamped non-display smart speaker portfolio to rekindle consumer interest, as well as a robust marketing strategy to build its Nest branding outside of the US.”
Vendors are facing the challenge of pivoting to more complex devices in the short term, with most vendors looking to integrate displays. “Despite feeling upbeat about the market outlook, vendors are wary about the price sensitivity towards the relatively new category of smart displays. Experimentation with different price points and value propositioning strategies are to be expected. However, uncovering new and unique use-cases with a strong focus on voice-first interface on smart displays should be the top priority for vendors,” added Low.
About Canalys
Canalys is an independent analyst company that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.
Suggested Items
Amphenol Reports Q1 2024 Results, Announces New Stock Repurchase Program
04/26/2024 | BUSINESS WIREAmphenol Corporation reported first quarter 2024 results. In addition, the Company is announcing a new three-year, $2 billion stock repurchase program.
Chinese Smartphone Market Maintains its Recovery Momentum at 6.5% Growth in 1Q24,
04/26/2024 | IDCAccording to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China smartphone shipments grew 6.5% year over year (YoY) to 69.3 million units in 1Q24.
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).
Technica USA Presents Inaugural Supplier Alliance Award at IPC APEX EXPO 2024
04/24/2024 | Technica USADuring IPC APEX EXPO 2024, Technica USA took the opportunity to thank all of their supply partners that made the effort to join them for the exhibition in their booth, as well to all of our SMT partners that had their own booths, with the latest in automation and process technology.
IDTechEx Report Unveils 3D Electronics Status and Opportunities
04/22/2024 | PRNewswire3D electronics is an emerging manufacturing approach that enables electronics to be integrated within or onto the surface of objects. 3D electronic manufacturing techniques empower new features, including mass customizability, greater integration, and improved sustainability in the electronics industry.