Apple Inc. (NASDAQ:AAPL) is reportedly facing a delay in its ambitious smart home vision, with a key product now expected to launch in 2025.
What Happened: On Wednesday, analyst Ming-Chi Kuo shared insights indicating that Apple's display-equipped HomePod, a key component of Cupertino’s strategy, has faced multiple production delays.
According to Kuo, the HomePod’s mass production was initially set for 2024 but has been postponed to after WWDC 2025, primarily due to software development challenges.
The new HomePod is expected to feature an A18 processor, a 6–7 inch display, and support for Apple Intelligence.
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He suggested that this product will mark a strategic shift in Apple’s HomePod lineup, similar to how the Apple Watch evolved from an iPhone accessory to a health management device.
"The display-equipped HomePod is expected to ship around 500,000 units in 2H25. If the market response is positive, this product's annual shipments could reach the million-unit level," Kuo predicted.
Why It Matters: Previously, it was reported that Apple is working on a new AI wall tablet, codenamed J490, which aims to challenge competitors like Amazon.com Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) in the smart home market.
This device, expected to be announced as early as March, will serve as a home command center, integrating AI for app navigation and video calls.
Apple is also reportedly planning to enter the smart home IP camera market in 2026, to achieve tens of millions in annual shipments.
According to Kuo, Apple may integrate this smart camera and HomePod "with its existing ecosystem and HomeKit to deliver a seamless smart home experience."
In October, Apple reported fourth-quarter revenue of $94.9 billion, surpassing analysts’ projections of $94.56 billion. The tech giant also reported adjusted earnings of $1.64 per share for the quarter, exceeding expectations of $1.60 per share.
Price Action: Apple’s stock rose 1.28% on Tuesday, closing at $242.65, with an additional 0.14% gain in after-hours trading, bringing the price to $243. So far this year, Apple shares have surged 30.71%, outperforming the Nasdaq 100 index, which has climbed 28.32% over the same period, according to Benzinga Pro.
Apple's consensus price target is $242.26 from 31 analysts, with the highest at $300 set by Wedbush on Nov. 29. Latest ratings from Wedbush, Morgan Stanley, and Maxim Group average $262.67, suggesting an 8.09% upside.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
