Apple Strategy in "Smart Home" Race Threatened by Amazon

Within a few years of launching the Echo speaker system in a bid turn modern homes into smart home Amazon is seen as a driving force in the ‘smart home’ segment. This particular system designed by the Amazon has shown its ease of use technology to the users wherein they can control wide array of gadgets within few commands.

The success achieved by the Amazon is set to get stiff competition not just from the Apple but also from the Google in upcoming future. Amazon has used open-system approach which results in quick development with more number of feature inclusion but Apple on other hand is taking a slower path which stems from its habit of keeping as much control over the technology as possible in order to infuse security and ease of use.

The key household devices which are finding their way in the emergence of the smart home include everything from the lighting system to the refrigerators. Amazon Alexa currently has over 250 devices working on its smart home system and Amazon brings a certain portion of financial incentives to its partners to keep them glued on its system. On other hand Apple’s Homekit has just 100 certified devices at the moment due to strict guidelines set by the Apple in order to ensure security as well as to bring rewards in returns.

Apple Homekit for smart home

In order to be a part of the Apple’s smart home and to be placed in the Apple’s gadget ecosystem manufacturers are required to insert a special chip in their devices. The price of this chip may vary anywhere between 50 cents to $2 as per the volume of the devices they are making at a single go. Apart from this chipset manufacturers will also have to buy certain specific WiFi and Bluetooth networking chips.

Furthermore manufacturers have to send their products to the Apple in order to test their compatibility with its system. This process is lengthy as it takes anywhere around three to five months and even device manufacturers are abstained from publicly stating that they are opting for the Homekit certification.

Amazon has an ‘open’ approach

Amazon has kept Alexa as a spate entity which deals with all the things ‘smart home’. It specifically deal with the smart home companies which happens to write software code and then submits it back to the Amazon for further review. Amazon has laid some simple yet influential steps to acquire the ‘Works with Alexa’ label for their products which will help in boosting sales on its shopping portal.

Startups are required to get their products physically tested by the Amazon before it showcases on the shopping portals. Amazon sacrifices the security portion on its smart home initiative as it can’t guarantee such in the third-party devices. Apple is actively working towards eliminating the security issue on its platform by keeping a strict guideline and policy which will eventually bring an advantage to Apple over Amazon.