New Delhi: Move beyond smart speakers as smart displays have come of age and in Q3, the sales of smart display speakers rose by 21 per cent (on-year) to reach 9.5 million units while sales of basic smart speakers (without a display) fell by 3 per cent over the same period.
According to a report by market intelligence and research firm Strategy Analytics, Amazon and Baidu lead the market for smart displays.
The best-selling devices in Q3 were the Amazon Echo Show 5 and the Baidu Xiaodu Zaijia 1c.
Smart speaker users are switching increasingly to display-based devices or Smart Displays and a growing range of smart display apps and services as well as lower device prices are key factors in their success.
“Like many sectors, smart speakers have had a difficult year for well-rehearsed reasons,” said David Watkins, Director, Smart Speakers and Screens.
“But the shoots of recovery are beginning to show, and vendor commitment is evident from the many new products and improved technologies now being introduced,” he added.
The share of all smart speaker sales incorporating a display was 26 per cent in Q3 2020, compared to 22 per cent a year earlier.
In the overall smart speaker market, Amazon retained first place in Q3 with a 28.8 per cent share of global shipments, although its sales fell slightly compared to a year earlier.
Amazon’s main rivals all increased sales and market share, with the exception of Xiaomi, which had a disappointing quarter, the report noted.
The 2020 smart speaker market was badly hit in Q1 by pandemic-driven supply issues, but has steadily recovered since then.
Q4 is expected to be a strong period following the launch of new models by the three major US vendors and continued improvement in economic and consumer sentiment in many countries.
“Barring any further major economic disruption, we expect 2021 to be marked by further healthy growth in the smart speaker business,” Watkins said.