Apple’s defending its distribution moat by setting up one around your home.
At 9 a.m. ET, the company will hold an event — “Welcome Home” — where it’s expected to unveil some smart-home devices as part of its bigger strategy in the space.
Details are scant. Apple’s teaser only includes a catchy tune and someone doing a trendy hobby (cross-stitching).
But according to Bloomberg’s Mark Gurman, we’ll learn more about HomeView, which will serve as a sort of hub to interact with and direct Apple’s smart devices in your home.
It’s a big push for Apple into the smart-home market, where it hasn’t succeeded as much as rivals Amazon and Google. But the decision feels more substantial than just taking on Amazon’s Alexa and Google Home.
It’s been a remarkable few months for consumer hardware.
In September, Meta surprised everyone with an AI device called Charm tied to its buzzy AI agent, Muse. It also showed off its new VR Glasses, which are lighter and cheaper than the Apple Vision Pro.
Charm is scheduled to ship for the holidays, while the Meta VR goggles are coming next spring.
The following week, OpenAI announced its own AI agent, Dots. While there was no major hardware announcement, the long-term goal is to release something with iPhone designer Jony Ive. OpenAI CFO Sarah Friar teased it a bit this June.
All of this matters because these hardware products mean tech companies would no longer rely on Apple for distribution. The iPhone’s massive reach is essentially a toll tech companies must pay to get their apps into people’s hands.
That’s allowed Apple to avoid investing as heavily in AI because it controls the key path to consumers. It also hasn’t forced it to rethink the iPhone too much. After all, why upset the golden goose?
Investors have rewarded Apple for its avoidance of massive AI budgets. Its stock is up more than 25% this year, outperforming Alphabet, Amazon, Meta, and Microsoft.
But the past few months show the potential for change.
Look how quickly Apple’s big hardware announcement last month, the iPhone Duo, has taken a back seat to chatter about AI agents and their accompanying devices. Meta’s stock is up more than 11% over the past month, while Apple’s is up just over 2%.
That’s why pushing into smart-home hardware makes sense. If Apple can cement its hardware in your home while it still has you hooked on the iPhone, that represents another hurdle for tech rivals.
At a time when AI is making us rethink our interactions with technology, Apple wants to make sure its house is in order. And the best way to do that is to go after yours.
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