While it remains uncertain whether Apple will continue branding this device as a HomePod or opt for a different name, it is designed to enhance smart home capabilities.

Additionally, the HomePod hub is expected to function as a home security system, displaying camera feeds and facilitating FaceTime calls through a built-in camera.

Apple has secured a favorable deal for the display panels, paying only $10 each to the Chinese manufacturer Tianma, which will help maintain competitive pricing.

While specific pricing details for the new HomePod are not yet available, the company is striving for affordability to gain an edge in the smart speaker market.

Mass production of the HomePod with a display is expected to begin in the second half of 2025, signaling Apple's commitment to enhancing its smart home offerings.

The inclusion of the A18 chip promises improved performance and may enable compatibility with AAA games, although the demand for such games on the device is expected to be limited.

Apple is set to launch a new HomePod in 2025, featuring a 7-inch LCD display and powered by the A18 chip, which is also used in the iPhone 16 and iPhone 16 Plus.

This new device will operate on a homeOS, featuring a customizable widget interface that integrates with Siri and HomeKit.

Described by Bloomberg's Mark Gurman as resembling a 'square iPad', the HomePod hub will include a touchscreen and can be mounted on a wall or attached to a speaker base.

Reports indicate that Apple is also developing a wireless security camera that will connect to the new HomePod hub.

The introduction of a 7-inch display aims to bolster Apple's competition against similar devices like Google's Nest Hub and Amazon's Echo Show.

These competing devices are typically priced between $150 and $300, and Apple is focusing on affordability for its new HomePod.