In the third quarter, Google's share of smart speakers basically fell off the cliff, falling from nearly a third of the market to just about 12%. This is one of the findings of the latest Canalis report, which released a quarterly review of the worldwide market during a time when (banning Google's performance) millions of people continued to buy new smart speakers and displays. From Amazon, mostly, it has increased its market share by almost 70% compared to this point in 2018.
Among the results, according to Canalis, this year's Prime Minister's Strong Day, as well as campaigns to return to school, helped Amazon sell 10.4 million speakers during the quarter and continue to pull out of the pack.
After Amazon, Chinese Alibaba sold well over a quarter (nearly $ 4m) to take second place globally, while another Chinese brand (Baidu) moved to third to knock Google in fourth. From the chart below, you can also see that Google was the single largest shipper that suffered a one-year drop in shipments:
"The advent of the small environment and the shipment shrinkage have made Google look for more partnerships, such as Spotify, to manage sales across different channels," Canalis senior analyst Asoney Lowe said of the data. "We also see similar trends of cooperation in China, where Alibaba has used its retail relationships and channel capabilities to co-operate smart speakers" with brands such as Starbucks.
On a similar note, the smart display category grew at a massive pace during the quarter, according to Canalys data – up 500% globally thanks to 6.3 million shipments between July and September. Low added, specifically to these products, that maintaining a price cap is "vital" if companies like Amazon hope to continue to increase sales of smart displays and that intense competition is expected before the holiday season for purchase. Here, however, Google turned into a poor performance, moving only 700,000 shipments of smart displays over the quarter.