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Apple Shares Fly High as Talks About Smart Home Surface

May 28, 2014 | About:
Quick Pen

Quick Pen

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Innovation is the name of the game where looking beyond ones comfort zone is the only way a company can thrive, and Apple (AAPL) appears to be doing this very well. The company seems to be on a roll as its stock has not been this high in the past year and thanks to the latest developments, people just can’t stop talking about the company.

Just days ahead of the WWDC 2014, the shares of the company are soaring high as investors and consumers are anticipating incredible and tempting new offerings from the tech mammoth. So, what’s going to be the next ace offering from Apple? iWatch or the next Apple TV? Well, if you are thinking any of these devices will steal the show, you are wrong. At least that’s what the latest rumors suggest.

Apple’s Latest Innovation

According to the rumor mill, the Cupertino giant is looking at launching a smart home offering that will allow users to control and secure their homes completely through their iPhones or iPads. All this will be made possible by a software that is under development at the moment, which will allow the lighting, security and even appliances in a house to be controlled using iOS devices.

The concept of converged devices has been around for some time now and consumers and manufacturers have clearly understood its importance. This latest technology from Apple will be an extension of this concept only, bringing together not only smartphones and tablets, but also every day appliances such as air conditioner, refrigerator, television, security system, lighting, heating, etc.

Presently it’s not pretty clear how Apple wants to go about its plan of developing this offering. Apple might choose to manufacture different home appliances itself by acquiring some firm. Or it might just enter into an outsourcing agreement with some manufacturers who will make such appliances on behalf of Apple. However, the most logical and probable option is that Apple will enter into partnerships with manufacturers whose appliance will be allowed to work with Apple’s offering. Consumers will be able to buy these Apple-compatible appliances from the usual stores and then sync them with their iDevices.

Though not much information is available on this matter, industry experts and analysts are expecting the company to shed some light on this topic in the forthcoming WWDC. However, some are not as optimistic about this technology and feel no such announcements will be made, and the concept of a smart home is for some other time in the future.

Competition

Though smart home solutions have not gained much popularity, these are not completely new offerings. If and when Apple comes out with this technology, it will be directly competing with other tech giants such as Google (GOOG) and Samsung (SSNLF). This will be the first time that Apple will enter the smart appliances segment. But, Samsung is no stranger to this space and already has a bunch of such appliances that can be controlled by smartphones and smartwatches. Even Google has ventured into this space after its acquisition of Nest Labs, a company that manufactures Internet-controlled thermostats and fire alarms. So, initially Apple might find it a little difficult to break into the space. However, keeping Apple’s brand value and reputation in mind, I don’t think the company will take much time to gain acceptance.

Departing Thoughts

The world around us, as we know it, will change drastically in the coming decade as people will start interacting more and more with the devices around them in a fundamentally different way. This latest innovation from Apple is a step ahead in this exact direction, allowing it to be placed at the heart of the Internet of Things. Apart from this, the converged-home system will eventually lead to a wide range of Apple products and Apple-compatible products being owned by consumers, thus helping in establishing a stronger user base and widespread presence of the brand. Analysts believe smart home solutions to be the next big idea for tech companies and once this technology is ready it will boost Apple’s growth. The only question that remains is how soon this technology can be made commercially available.

About the author:

Quick Pen
A seasonal writer with a Management Degree in Finance and interests in automotive, technology, telecommunication and aerospace sectors.

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