• Apple has the potential to solve key issues currently plaguing the smart home segment.
• Expanding into the smart home segment along with Apple Intelligence can become the ultimate lock-in.
• For Apple to make a dent in the smart home segment, a lot hinges on the success of Apple Intelligence.
• Entering the growing smart security camera has direct synergies with Apple’s current portfolio.

Apple has tried to enter the smart home category multiple times in the past, whether it is the Apple TV box or HomePod or HomeKit, but all these attempts resulted in limited success. In fact, during the Steve Jobs era, Apple reportedly also worked on a touchscreen TV that would sync with other devices. However, the project was shelved due to low profit margins in the TV segment.

If we look at the smart home segment, the promise is a futuristic, proactive and intelligent home like that shown in the iconic animation series “The Jetsons”. However, that future is distant. The segment has been struggling with many issues, including multiple communication protocols, devices not being compatible with each other, requirement of multiple often incompatible applications, and somewhat limited “smart” functionality on offer.

To solve these problems, there have been attempts to launch “hub” devices that can connect to multiple devices and there has been some work on common communication protocols like Matter. However, none of these technologies has been able to reach its full potential yet. Despite these issues and its previous failed attempts, Apple is reportedly working on entering the smart home market again with a “smart home display” and a security camera. But this time, things are a bit different, and Apple has a higher probability of success.

Apple is probably the only industry player that has the potential to solve most of the current issues plaguing the smart home market. With its already existing seamless device connectivity, Apple has the know-how to build an ecosystem of hardware and services. The focus on privacy will also go a long way in the smart home foray, while the interoperability using Matter will help Apple gather intelligence from a wide range of devices, helping it provide unique use cases as well as solve the issue of high levels of fragmentation in the industry.

Apple can build a smart home system that could be more proactive and take actions based on individual user’s preferences and habits. The access points to this intelligence would be multiple Apple devices, thus providing capabilities to be always connected to the system. If executed seamlessly, this would be the ultimate lock-in in the Apple ecosystem.

The smart home also provides a feasible monetization opportunity for Apple Intelligence, which would also act as the ultimate lock-in within the Apple ecosystem. Entering the smart camera market also makes strategic sense considering direct synergies with Apple Intelligence and the segment’s growth potential.

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