HomePod Estimated to Cost Apple $216 to Build

The HomePod smart speaker costs Apple about $216 to build, according to analysis by TechInsights via Bloomberg.

Given the HomePod’s $349 price, that $216 cost suggests Apple is generating margins of about 38 percent, according to the product analysis firm. That compares with margins of 66 percent and 56 percent for the Google Home and Amazon Echo, products that compete in the smart-speaker market, but offer lower audio quality, according to the firm’s estimates.

“Apple is compressing their margins a bit, wanting to go big or go home,” said Al Cowsky, TechInsight’s costing manager. “In doing so, I suspect they reduced the selling price from a normal Apple margin in order to sell more units on volume.”





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