Google sales

Amazon Dominates Smart Speaker Market While Google’s Sales Drop 40%

The last Canalys The report came out for the third quarter of 2019, and it shows that sales of smart speakers and displays are still on the rise. In the third quarter, sales of smart speakers alone increased by 44.9% for a total of 28.6 million units sold.

However, as always, there are winners and there are losers. This quarter, Amazon is the big winner in smart speakers, taking the top spot with 36.6% overall market share and shipping 10.4 million units in the third quarter of 2019.

Overall, Amazon grew 65.9% year-on-year, driven by strong sales of its Prime Day, back-to-school and college-out-of-college promotions in the quarter. Sales were also helped by Amazon’s “Echo Upgrade Program” which offers customers a discount when upgrading an older Echo speaker for a newer one.

Unfortunately for Google, it saw a major slippage with just 3.5 million units in Q3 2019, for a 40.1% drop in sales compared to the same time last year. Worse still, Google saw its overall market share drop from 29.8% in Q3 2018 to 12.3% in Q3 2019.

While the decline in market share may be related to a slowdown in sales, it is also much more related to the rise of smart speakers from Chinese brands. While Google was in second place behind Amazon, the popularity of smart speakers has increased this year in China, with Alibaba and Baidu taking second and third place, dropping Google to fourth place.

Sales of smart displays didn’t move as many units as smart speakers in Q3 2019, shipping just 6.3 million in total, but that was still great news because it’s This is 500% growth for the market. The big winner here was Baidu with 2.3 million units sold, which was more than its smart speaker. Amazon was not far behind, selling 2.2 million in the third quarter, while Google only moved 700,000 smart displays.

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