Apple Delays HomePod Launch: New Smart Home Vision Set for 2025

Key Insights: Apple Inc. AAPL is facing delays in the launch of its innovative smart home product, the HomePod, which is now expected to debut in 2025.

On Wednesday, analyst Ming-Chi Kuo revealed that the version of the HomePod with a display has encountered several production holdups. Originally scheduled for mass production in 2024, the launch has been pushed back to after WWDC 2025 due to challenges primarily related to software development.

The HomePod is anticipated to boast an A18 processor, a 6–7 inch display, and compatibility with Apple Intelligence. This product aims to change the perception of the HomePod lineup, much like how the Apple Watch evolved from being just an iPhone accessory to a valuable health management tool.

Kuo predicts that approximately 500,000 units of the display-equipped HomePod will ship in the second half of 2025. Should customer reception be favorable, shipments could potentially reach one million units annually.

Why This Is Important: Apple’s ambitions in the smart home market also include a new AI wall tablet, codenamed J490, aimed at competing with giants like Amazon.com Inc. AMZN and Alphabet Inc. GOOG GOOGL. This tablet, expected to be unveiled as early as March, will serve as a central command center for smart home devices, utilizing AI for app management and video calls.

Additionally, reports suggest that Apple plans to enter the smart home IP camera market by 2026, potentially achieving tens of millions in annual shipments. Kuo indicates that the integration of this smart camera with the HomePod and Apple’s HomeKit could create a unified smart home experience.

In its most recent quarter, Apple announced revenue of $94.9 billion, exceeding analyst expectations of $94.56 billion. The company also reported adjusted earnings of $1.64 per share, surpassing the anticipated $1.60 per share.

Market Reaction: On Tuesday, Apple’s stock increased by 1.28%, closing at $242.65. The stock saw a slight rise of 0.14% in after-hours trading, reaching $243. Over the course of this year, Apple shares have risen by 30.71%, outperforming the Nasdaq 100 index, which gained 28.32% during the same timeframe, according to Benzinga Pro.

The consensus price target for Apple is $242.26 based on evaluations from 31 analysts, with the highest estimate at $300 from Wedbush on November 29. The latest ratings from financial analysts, including Wedbush, Morgan Stanley, and Maxim Group, average $262.67, signifying an 8.09% upside potential.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.