A high price of entry could prove to be an impediment to growth for the burgeoning smart home market. Alphabet Inc.’s Nest is reportedly vying for a larger piece of the smart home market pie by developing less expensive versions of its products.
According to a person familiar with the matter cited by Bloomberg, Nest is working to develop a model of its smart thermostat — which learns to adjust climate settings based on user behavior — that would reportedly sell for under $200. (The current version retails for some $249.)
In addition to the more affordable thermostat, which could make its market debut by next year, a cadre of less expensive updates to Nest’s smart alarm system, digital doorbell and indoor security camera are also reportedly in the works. The end product results will likely be comprised of less expensive component parts to bring the price tag down.
The news comes soon after Nest rolled out two-factor authentication support via software update. Nest products connect to Wi-Fi and as such are susceptible to hacks — a fact that more consumers than ever are aware of following the use of thousands of unsecured IoT devices to facilitate the DDoS attacks on Dyn this past year. While two-factor authentication is certainly a step toward best cybersecurity practices, it may not be enough entirely safeguard user data against increasingly sophisticated cyberattack methods.
Back in January, Nest announced the launch of its line of products in Germany, Austria, Italy and Spain with functionality in the local languages. While Nest’s hardware, software and services had only been made officially available in seven countries prior to this recent launch, the company said that Nest products are used in upwards of 190 countries worldwide.
The demand is global, so if Nest rolls out lower-cost smart tech, it could only serve to boost worldwide sales and adoption of smart home technology.