It's a high-quality, high-priced speaker meant for the Apple music ecosystem. The first time they tried this, the Apple HiFi got great reviews for its sound quality, but failed in the marketplace.
The question is whether the HomePod will meet the same fate. It's got more functionality than the HiFi, but even less utility outside of the Apple walled garden. What's worse, they've got a fundamental mismatch between consumer perception (people think it's an Alexa / Google Home competitor) and what seems to be Apple's intent (it's an audiophile device for streaming music).
If they pivot quickly and release a small, competitively priced version that can compete directly with Amazon and Google, it could survive. But as it stands, it's a niche product for a small market that looks likely to meet the same fate as the HiFi.