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Will it be a good business to enter the smart speaker market?
"In the age of the Internet of Everything, voice has emerged as the most natural form of communication between humans and the external world, becoming the primary mode of human-computer interaction in artificial intelligence. How does one step into this voice-driven scene? Internationally and domestically, tech giants have naturally gravitated toward smart speakers, triggering a flood of releases akin to a tidal wave and spawning a fresh wave of innovation.
However, while these speakers look appealing, they haven’t quite found their place in every household. Given the current imperfections in smart systems, will the speaker truly emerge as the linchpin of smart homes?
This time around, it’s Lenovo’s turn to join the fray. At the recent Lenovo Global Innovation and Technology Conference, they unveiled a voice-enabled smart speaker named SmartCast+. Amazon might not have anticipated that the Echo smart speaker it released years ago would quietly spark a new battleground. The list of ‘giants’ entering the smart speaker arena is growing. Overseas, there’s Google, Apple, Microsoft, JD.com, and HKUST. Domestically, Alibaba, Lenovo, and others are also getting involved. Recently, Baidu announced at its AI Developer Conference that it would collaborate with hardware makers to launch smart speakers, following its bold move to open-source DuerOS.
The list of players seems bound to grow longer.
Despite smart features, it’s still not quite “intelligent.â€
Where does the “smart†in smart speakers lie? You can converse with them. Voice interaction is the "essence" of all smart speakers. By speaking, you can issue commands or simply engage in casual conversation.
They support both local and networked streaming media playback, making them a more "flexible" version of regular speakers with virtually unlimited content expansion. Some smart speakers can even push personalized recommendations based on user habits.
Some advanced models allow you to shop, order food, book hotels, and purchase tickets. In the future, when you're busy, you won't have to worry about lifting a finger—you'll just need to speak. If smart speakers gain enough partnerships, they could potentially control various household appliances.
Of course, if you’re accustomed to smart phones and various digital assistants, these functions might not seem groundbreaking. But, you’d certainly prefer a speaker that doesn’t repeatedly respond with, “I’m sorry, I don’t understand what you’re saying.â€
Liu Wei, director of the Human-Computer Interaction and Cognitive Engineering Lab at Beijing University of Posts and Telecommunications, noted that smart speakers have many useful features—they can report the news, weather, and serve as personal assistants—but the user experience remains subpar. For instance, there’s often a lag in responses. While they handle simpler questions like “When,†“Where,†and “What†well, they struggle with more complex inquiries like “How†and “Why.â€
This isn’t unique to smart speakers. Liu Wei explained that addressing the challenges of “semantics†and “pragmatics†is a common hurdle for AI voice interaction.
So why are tech giants flocking to smart speakers?
Several experts interviewed pointed out that Amazon's Echo smart speaker served as a significant demonstration of success. Echo launched in 2014 and gained traction after a slow start, selling over 6.5 million units in 2016, with expectations surpassing 10 million in 2017.
In response to Echo’s success, the Chinese market has seen increasing competition. However, according to Sina Technology reports, monthly sales of smart speaker products in China are less than 20,000 units. According to the 2016 annual report from HKUST Telecom Co., Ltd., the combined sales of smart speakers launched by JD.com reached 100,000 units.
“Echo has its own cultural soil. Europeans and Americans tend to have more private living spaces and prioritize sound quality. In contrast, Chinese living spaces are often crowded, and privacy is less of a concern. Additionally, most people here don’t have a specific demand for sound quality,†openly admitted Di Yun, CEO of a multimedia content cloud solution provider.
Nevertheless, the speaker is a logical choice for voice-controlled devices.
Husheng noted that the speaker is the medium for voice input and output. Enhancing it with “selection†and “customization†functions is a logical progression. Xiang Yang, a senior consultant at CCID Consulting’s Electronic Information Industry Research Center, bluntly stated that if one wants to delve deeper into the voice market, integrating software and hardware is essential. Applying this to more industries, acquiring more users, and offering value-added services is key. Xiang Yang added that compared to other high-priced products, a relatively affordable smart speaker is easier to sell.
As for who can truly replicate Amazon’s success, predicting remains challenging.
Husheng mentioned that factors like technical proficiency, user experience, product marketing strategies, and even luck influence a product’s market performance. “Now, smart speakers are still in the ‘product development’ phase. From shipment volumes, they haven’t been particularly successful yet.â€
What are the entry tickets to the smart home era? The answer: capturing the gateway.
Capturing the gateway of voice interaction also means seizing the entrance to the future of smart homes.
Liu Xingliang, Dean of the DCCI Internet Research Institute, divided human-computer interaction into three eras: the click era, the touchscreen era, and the speech era.
In this new era, giants need new “standards.†“The competition in the smartphone market has intensified. Now everyone is making smart speakers, opening up new battlefields,†Hesheng said.
If everything is eventually equipped with voice capabilities, this market will hold immense value. Xiang Yang believes that the future of interconnected devices will inevitably feature voice interaction, but smart speakers won’t be the sole entrance. Voice interactions will coexist with other forms of interaction, and people will choose the most natural method based on their environment.
As for smart homes, this is a “systematic project.â€
Liu Wei said that today, smart homes are generally considered to be automated control integration, but this level of smart home doesn’t align with users’ desired lifestyles. “What you want done instantly isn’t possible, and what you don’t want is often forcefully recommended.†Liu Wei explained that this issue isn’t merely technical—it requires product designers to deeply understand users’ habits and human nature, which cannot be fully quantified. These are more like “common sense†that artificial intelligence struggles to grasp.
Moreover, human-computer interaction involves more than just individuals and machines. It also includes the environment and systems. Liu Wei elaborated that people can be either “individuals†or “groupsâ€; “machinery†refers not only to home appliances but also to the mechanisms of system operations; the environment encompasses both natural and social contexts. “It’s very difficult to achieve a smart home by simply connecting or combining individual products,†Liu Wei admitted.
Hesheng also noted that in smart home systems, different products remain fragmented. “If you buy Brand A’s TV, will you necessarily buy Brand A’s washing machine?†If lights, air conditioners, fridges, and other smart home members operate on incompatible communication protocols, having a smart speaker “command†just one or two devices makes it hard to usher people into the era of interconnected smart living.
Smart homes are a work in progress, and the challenges are vast. Products must be user-friendly and interoperable; home networks must be agile and secure, with costs kept low while minimizing wiring and radiation. “It’s not just about evolving products; the entire social environment and technology need to evolve,†Liu Wei said.
Thus, despite the buzz around smart speakers, the smart home trend hasn’t yet taken off."