According to new research from TechInsights, Apple spends $216 to build a $350 HomePod, so margins from the tech giant's wireless speaker are slimmer than, for instance, those for its iPhone line.
Apple is generating margins of about 38%, according to the product analysis firm. That compares with margins of 66% and 56% for the Google Home and Amazon Echo.
“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.”