Apple is believed to be developing a smart speaker unit to rival Amazon Echo. The device is expected to be reliant on Siri and will be able to interact with users. It is also expected to be equipped with a camera. However, this feature is likely to be optional to protect the privacy of the users.

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Bloomberg reported that Apple started working the project more than two years ago. It is now believed to have past research and development and in the prototype testing stage. The gadget will be able to manage a smart home with the ability to control lights, appliances, curtains, locks, and many other things.

The speaker is expected to come with upgraded microphone and speaker technology. Bloomberg reported that some prototypes were equipped with facial recognition sensors. The speaker will be able to process several Siri commands used on iPhone.

Apple is looking to make a dent in the Internet of Things market. The company is working on several projects such as the development of smart cars. Smart speakers apparently fit the company's vision to create an entire ecosystem based on Siri. The segment is also rife with competition as Amazon has already launched its Alexa-based Echo system. Google is also working on developing Google Home.

According to Forbes, the device is likely to be the hub of Apple's HomeKit, which is designed to work with third-party smart home devices. Apple uses its virtual assistant Siri for this purpose. Despite being launched in 2014, HomeKit has seen a tepid adoption rate.