Does Apple Need its Own External AI Device?

Amazon’s Echo device, with its AI voice assistant, has become the new sweetheart of the tech industry.
Most of the big vendors were caught off guard when Amazon introduced the Echo, positioning it as a home assistant. This was Amazon’s way of introducing their own version of an AI voice-assisted device, similar to what had already become commonplace in Apple’s iPhones via Siri, Android phones with Google Now, and Windows phones through Cortana. However, using it as a home hub has turned out to be one of the best things they have done, since they tie it to their store and Prime Services as well as make it a host for various IoT and home automation devices. Researchers believe Amazon will sell upward of four million Echos in 2016.

At Google’s I/O Conference, they introduced their own take on the Echo with their Home device that will ship this fall. At the moment, Apple’s way to deliver AI voice assistance comes only via Siri on their iPhone and iPad. But many have been wondering when Apple will bring their own version of the Echo to market.

In a few days, Apple’s Worldwide Developer Conference will kick off in San Francisco and rumors are flying Apple will jump into the voice assisted home hub concept in one form or another. Most rumors suggest Apple will put it into the Apple TV and this will be their answer to Echo and Home. While I do think Apple TV will get additional Siri support, I am not convinced this is the best way for them to create a home hub. In my home, an Apple TV sits in our living room but the Echo sits on the counter in the kitchen which is the hub of most of our activity. That location serves our purposes the best.

In a Tech.pinions column, I pointed out Apple tends to look at products and watch how they are received and, if they have merit, they refine the concept, add their own level of innovation and industrial design and then tie it to their overall ecosystem of apps and services. Given this is the way they operate, I am not sure they would hurry a similar product to market just to have a competitive answer to the Amazon Echo and Google Home.

While the Echo is hot and Google has responded with their own version of it, the jury is still out as to whether this is actually a hit with long-term reach. Yes, it serves a purpose and interest is high. But it has a long way to go to live up to its full potential.

Apple does not do “me too” products. If Apple does jump in, which I doubt will be this year (at least as a standalone product), they would only do it if their offering is superior to what is on the market now. More importantly, once they do bring out something in this class of product and tie it to the next generation of Siri and their ecosystem of apps and services, their first year’s sales could dwarf what Amazon will do this year.

While Apple could surprise us and use the Apple TV as more of a hub with Siri, I suspect the bigger play would be to do a more powerful version of what is already available and bring it out when they know they have advanced this product category substantially. Only then would it make sense for them to enter this market and do it their way and on their terms.