Futuresource Finds Smart Speaker Privacy Concerns, COVID-19 Fueled Headphone Sales

Privacy concerns are slowing smart speaker uptake, even as global headphone sales benefited from lockdowns and remote working, Futuresource reported Friday: Primary speaker concerns are how data is used and worries of “being listened to” by tech companies. Desire for high quality audio filtered through to streaming, said analyst Alexandre Jornod. More than 40% of service users say they want better audio quality; more than half are willing to pay up to $3 more monthly. Jornod cited Amazon HD as a catalyst. The rise in podcast consumption doesn’t appear to be cannibalizing music listening, said Jornod, as 80% of podcast listeners say they consume the same or more music due to listening to podcasts. Meanwhile, Q2 headphone sales are recovering. “Although March and April were hit hard, many brands came back fighting, with product promotions and multiple offers,” said analyst Adriana Blanco. Headphone unit sales were down 8% in Q2, but dollar sales rose on strength of true wireless models, which accounted for 40% of headphones shipped. Apple’s AirPods led the charge.