Apples Push into the Smart Home: Can It Reshape the Home Experience?

Apples Push into the Smart Home: Can It Reshape the Home Experience?For years, Apple has sold us devices that are indispensable parts of our livesproducts we carry in our pockets, wear on our wrists, keep in our backpacks, and use on our desks. But Apple has not had the same success in key areas like cars, wearables, and smart homes

Apples Push into the Smart Home: Can It Reshape the Home Experience?

For years, Apple has sold us devices that are indispensable parts of our livesproducts we carry in our pockets, wear on our wrists, keep in our backpacks, and use on our desks. But Apple has not had the same success in key areas like cars, wearables, and smart homes. Earlier this year, Apple shut down its heavily-funded car project, and its Vision Pro mixed-reality headset has yet to prove the widespread appeal of face-worn devices. Apples smart home products, meanwhile, have been a mixed bag, with its HomePod smart speaker and Apple TV set-top box attracting a loyal following but still trailing competitors.

Now, Apple is brewing an aggressive new strategy to conquer the smart home market with an end-to-end experience, bringing its screens and software into every room of the home. Mark Gurman, a veteran Apple analyst, predicts that home hardware will be a key area of focus for Apple over the next two years. The plan includes the development of a new homeOS operating system, the launch of smart displays, and the creation of a high-end desktop device.

Amazon and Google have also struggled to dominate the smart home market. Part of Apples difficulty in this space has been its focus on premium products within a closed ecosystem. However, consumers in the smart home market prefer products that work with multiple devices. To ensure the success of its next generation of home hardware, Apple must ensure its devices support as many smart accessories as possible, and its moving in that direction. Apple is participating in the development of the Matter smart home protocol, which aims to enable seamless interoperability between Amazon, Google, and Apple devices.

Meanwhile, artificial intelligence is also becoming a cornerstone of Apples home hardware strategy. Apple plans to provide home automation services to users through a new Apple Intelligence platform, allowing them to precisely control applications, devices, and media. The AppIntents system, a core component of Apple Intelligence, will give Siri powerful control over features inside applications. AI will also profoundly impact how the products work. Apples desktop device will use AI to sense its surroundings, including identifying people watching the screen, monitoring peoples activities, and picking up the voices of speakers. This unprecedented level of interactivity could make the device a flagship product for Apples smart ecosystem.

Software is the third major element of Apple's smart home strategy. This includes the new homeOS operating system, which will be built on top of tvOS. It also includes a major overhaul of Apples Home app to enhance the user experience. To drive these projects, Apple is assembling a new Home Ecosystem team with engineers drawn from its shuttered car project.

Despite its efforts, Apples foray into the smart home remains uncertain. Historically, Apples first home product, the iPod Hi-Fi, was discontinued after just 18 months of its 2006 release due to a lack of innovative features. The subsequent, high-end HomePod smart speaker also failed to deliver a groundbreaking experience, gaining traction only after the release of the more affordable HomePod mini in 2020. While Apple TV has a loyal following, it also lacks the price advantages of its cheaper alternatives.

It's worth noting that Apple's rivals haven't achieved breakthroughs in the smart home market either. Amazon's Echo smart speakers, though initially strong, have lost momentum, and other hardware products like its Astro robot haven't created a buzz. This means there is still room for Apple to make its mark.

One of Apple's upcoming initiatives is a new smart display that can not only play television and streaming content but also support FaceTime calls, web browsing, and access to Calendar, Notes, and other apps. This iPad-like device, expected to be priced affordably, is likely to become a new favorite in consumers' homes, just like the HomePod mini, placing it in multiple corners of the house.

In addition, Apple is preparing a high-end desktop device, priced around $1,000, that is primarily designed for home security monitoring, advanced video conferencing, and high-quality audio playback. Expected to launch later this year, the device's unique feature is its rotating robotic arm design, which aims to differentiate it from the competition.

For Apple, the smart home market is still an open field with no clear leader. The future will eventually see a dominant player in this space, and if everything goes according to plan, that player could be Apple.