China's smart speaker shipments reached an all-time high last quarter:
Chinese smart speaker makers Alibaba, Baidu, and Xiaomi all experienced meteoric growth in Q1. Alibaba's smart speaker shipments grew over 200% YoY to 3.2 million, Xiaomi's grew over 400% YoY to 3.2 million, and Baidu was able to ship the most smart speakers of the three despite only entering the market in Q2 2018.
The Chinese smart speaker market, led by the above-mentioned companies, shipped more units than the US market, led by Google and Amazon. Google and Amazon shipped 8.1 million smart speakers in Q1 2019, while the trio of major Chinese vendors shipped a collective 9.7 million smart speakers. None of the Chinese players have individually surpassed Amazon or Google in shipments yet, though.
Chinese companies enjoy native advantages in their home market compared with US competitors. US companies like Amazon and Google are at a disadvantage in China because they lack the same working relationships that likely exist between Chinese device makers and Chinese tech companies that make ubiquitous platforms like WeChat. Moreover, US companies likely lack access to an established local developer community for their products.
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