Sunday, December 15, 2019
Amazon and Chinese Companies Outshine Samsung and Apple in AI Speaker Market
Samsung Set to Release Galaxy Home Mini
Amazon and Chinese Companies Outshine Samsung and Apple in AI Speaker Market
  • By Michael Herh
  • November 28, 2019, 10:30
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Lee Ji-su, executive director of Samsung Electronics' AI Strategy Group, gives a keynote speech at the Bixby Developer Conference held at Sejong University on Nov. 21.

Amazon and Chinese companies have formed a two-runner race in the global AI speaker market. Samsung Electronics is seeking to carve out a niche by releasing its own AI ​​speaker to the market at the end of this year or early next year.

The Amazon Echo placed first with a 30 percent market share among AI speakers in the world, Strategic Analytics (SA) said on Nov. 27. Amazon shipped 10.5 million units in the third quarter of this year, ramping up its AI speaker shipments by 46 percent in one year.

Chinese companies recorded a remarkable growth, too. Chinese companies took third to fifth places in the world by expanding sales on their home turf. Baidu’s shipments surged 130 percent to 4.3 million units in one year since 1.9 million units in the third quarter of last year. As a result, the company came in third with a 12.2 percent market share. Alibaba and Xiaomi finished fourth and fifth with 11.2 percent and 9.6 percent, respectively. The three Chinese companies’ combined market share is 33 percent, which is equivalent to that of first-ranked Amazon.

"China is the world's largest smart speaker market as it accounts for 36 percent of global shipments," said David Mercer, vice president of SA. "Baidu, Alibaba and Xiaomi created the smart speaker market in China through discounts and promotions."

On the contrary, Google maintained its second place, but its share fell from 22.8 percent in the third quarter of last year to 17 percent in the same period of this year. Apple shipped 1.8 million units, ranking fifth with 5.1 percent.

Samsung Electronics also plans to enter the AI ​​speaker market. It unveiled the new AI speaker Galaxy Home Mini at Samsung's Bixby Developer Day held at the Convention Center of Sejong University on Nov. 21. Samsung took wraps off its first AI speaker, Galaxy Home, in New York in August last year, but has not released it until now. Instead, the company will launch a new Galaxy Home Mini within several months to make a foray into the AI ​​speaker market.