Apple partners with builders on ready-to-buy smart homes – Marketing Dive

Dive Brief:

  • Bloomberg reported that Apple is partnering with home builders to pre-install its Internet of Things devices for ready-to-go smart homes for new homebuyers.
  • A model home in California has been outfitted in $30,000 worth of Apple IoT tech to demonstrate what a fully smart home tech furnished residence would look like.
  • Apple is looking to bring home automation to the mainstream with the strategy, a company representative told Bloomberg. 

Dive Insight:

The smart home revolution via a variety of IoT devices working in concert is well underway. Amazon has its Echo device that can control a variety of smart home tech such as lighting, and Google has rolled out Google Home as the central command center along with Alphabet’s Nest devices ready to be connected to Home.

Apple’s gambit is an interesting approach to the smart home market, as Bloomberg reported its gambling that people might be more willing to take the smart home plunge if the tech is already in place and baked into the selling price of a new home. The company needs to make up some ground if it is to catch up with Amazon and hopes that by starting at the beginning, when homes are being built, it can accomplish this. 

Strategy Analytics Inc. predicts $24 million worth of connected home devices will be sold this year with that number almost doubling by 2020, so it’s clear there’s a solid market for the smart home. No matter how smart homes come to be, marketers should keep track of developments in the field. The truly connected home will produce an amazing amount of highly personalized data that will become increasingly valuable for extremely targeted marketing depending on adoption rates and how that data is made available to marketers – or if it ever will be made available.

One issue with the approach is smart home IoT tech is still in its infancy and Target spokeswoman Jenna Reck told Bloomberg, “The smart home will get there but it’s not there yet. Adoption is happening even slower than people predicted.”

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