Apple Inc. is already in consumers' pockets, on their desks and underneath their televisions. Soon, a device embossed with "Designed by Apple in California" could be on their nightstand or kitchen counter as well.
The iPhone-maker has started manufacturing a long-in-the-works Siri-controlled smart speaker, according to people familiar with the matter. Apple could debut the speaker as soon as its annual developer conference this month, but the device will not be ready to ship until later in the year, the source said.
The device will differ from Amazon.com Inc.'s Echo and Alphabet Inc.'s Google Home speakers by offering virtual surround sound technology and deep integration with Apple's product lineup, said the source, who requested anonymity to discuss products that aren't yet public.
Introducing a speaker would serve two main purposes: providing a hub to automate appliances and lights via Apple's HomeKit system, and establishing a bulwark inside the home to lock customers more tightly into Apple's network of services.
That would help combat the competitive threat from Google's and Amazon's connected speakers: the Home and Echo mostly don't support services from Apple. Without compatible hardware, users may be more likely to opt for the Echo or Home, and therefore use streaming music offerings such as Spotify, Amazon Prime Music or Google Play rather than Apple Music.
"This will be a platform for developing Apple's services," says Gene Munster, a co-founder of Loup Ventures and former Apple analyst.
Apple spokesman Trudy Muller declined to comment.
Chief Executive Officer Tim Cook has emphasized Apple's services businesses over the past 18 months as iPhone sales slowed.
Apple will also likely let third-party services build products for the speaker. Last year, Apple opened up Siri on the iPhone to the likes of Uber Technologies Inc. and Facebook Inc., allowing a user to order a ride or send a WhatsApp message with a voice command.
SundayMonday Business on 06/04/2017