Huawei has its sights set on becoming the next challenger in the global smart speaker space, following its announcement to break into European markets, according to CNBC.

Years From Technology Introduction To 75% US Adoption
Business Insider Intelligence

The Chinese mobile giant initially launched its Sound X smart speaker exclusively in its domestic market this past November, starting at 1,99 yuan ($284). Now, Huawei plans to release the Sound X smart speaker across several European countries, including Germany, France, Italy, and Spain.

Huawei's Sound X smart speaker has both benefits and drawbacks that will critically determine its success in the global market: 

  • Outside of China, Huawei's smart speaker lacks the "smart" factor. In China the Sound X smart speaker comes fitted with Huawei's own voice assistant, Xiaoyi, which can be used for smart home control and on-device commands. But outside of China, the device will ship without a voice assistant, meaning it's unlikely to pose a serious threat to devices from market leaders Amazon and Google. Recognizing the disadvantage of omitting an AI-powered voice assistant, Huawei Senior Manager Peter Gauden mentioned the possibility of adding support for voice assistant tech in the future. Since Huawei will need to expand language support for its voice assistant, it will likely look for a partner to bring voice support to devices outside of China. Still, third-party voice assistant support may not be enough; the world's top five smart speaker manufacturers natively embed their own AI into their products.
  • However, the speaker's emphasis on audio quality could be a game changer. Huawei's Sound X device was created in partnership with French audio company Devialet, which is best known for its top-of-the-line $3,000 Phantom speakers and for earning high-profile endorsements from the likes of Jay-Z and LVMH's billionaire CEO Bernard Arnault. Huawei's ability to introduce a device that offers a superior, high-quality audio experience could be key, since consuming media, specifically music, is by far the most-cited use case for smart speakers, according to Business Insider Intelligence's Smart Speaker Report. If Huawei follows through to add an AI-powered voice assistant to the Sound X, the device's superior audio quality could outweigh any drawbacks it might still face. 

Regardless, Huawei likely is banking on smart speakers as an opportunity to drive up usage of its in-house services. Due to trade issues threatening Huawei's access to Google's Android OS, Huawei was compelled to debut its alternative OS in August 2019.

Going forward, Huawei plans to continue to develop in-house alternatives, even if it were to regain access to Google Play Services. While the ban hasn't displaced Huawei's dominance in either the global or European smartphone markets — in which Huawei shipped 19% and 22% of devices in Q3 2019, respectively — it's likely looking for avenues to drive up usage of its services, even if it doesn't experience smartphone market share declines.

With smart speakers being one of the fastest-adopted hardware categories, outpacing even the smartphone, it makes sense that Huawei would want to tap into global consumer demand for smart speakers to gain an additional access point for its own products. 

Want to read more stories like this one? Here's how to get access:

  1. Sign up for Connectivity & Tech Pro, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of connectivity, delivered to your inbox 6x a week. >> Get Started
  2. Check to see if you already have access to Business Insider Intelligence through your company, or inquire about access if you don't. >> Check If You Have Enterprise Access
  3. Explore related topics in more depth. >> Visit Our Report Store
  4. Current subscribers can log in to read the briefing here.

Signup Today: Connectivity and Tech Pro by Business Insider Intelligence