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Reviving Apple's Smart Home Strategy: New Product Developments

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Chapter 1: Apple's Ambitious New Device

Apple Inc. has faced challenges in establishing a stronghold in the smart-home market. However, a promising new device currently under development could potentially shift the landscape.

According to sources familiar with the situation, Apple is designing a product that merges the functionalities of an Apple TV set-top box with a HomePod speaker. This innovative device is also expected to feature a camera for video conferencing through a connected television, alongside various smart-home capabilities.

Section 1.1: Features and Capabilities

The device is anticipated to offer traditional Apple TV functionalities such as streaming video and gaming, in addition to smart speaker features like music playback and the use of Apple's Siri virtual assistant. If successfully launched, this would mark Apple's most ambitious endeavor in smart-home hardware to date.

Subsection 1.1.1: Competing in the Market

Concept image of Apple's combined TV and speaker device

In addition, Apple is contemplating the introduction of a high-end speaker equipped with a touchscreen to enhance its competitiveness against major players like Google and Amazon. This device might integrate an iPad with a HomePod speaker and include a camera for video calls. There have even been discussions about connecting the iPad to the speaker using a robotic arm that can track users throughout a room, similar to Amazon's latest Echo Show device.

Section 1.2: Development Stages

It's important to note that both products are still in the early phases of development, and Apple may ultimately decide to abandon the projects or modify key features. The company frequently experiments with new concepts that may not reach the market. An Apple spokesperson opted not to comment on these developments.

Chapter 2: Market Context and Future Potential

This video provides insights on setting up HomePods as TV speakers, showcasing how Apple might integrate its audio devices with visual media.

Apple's new offerings could potentially rejuvenate its status in the smart-home segment. As of 2020, Apple held a mere 2% share of the TV streaming device market, while the HomePod has consistently captured less than 10% of the smart speaker market.

In March, Apple discontinued its premium HomePod line, and the Apple TV box has not seen an update in over three years. The company did, however, launch the HomePod mini last year, which has seen greater success due to its competitive pricing.

In 2020, Apple merged its HomePod and Apple TV engineering teams, streamlining the software that operates on both devices. This strategic move hinted at potential future integration of their hardware lines.

This video covers everything you need to know about Apple Home Hubs, emphasizing the role these devices could play in enhancing the smart home experience.

The idea of a combined speaker and TV box remains relatively unexplored by competitors like Google and Amazon. While Facebook has released a Portal video chat device that utilizes a TV as a display, Amazon's Fire TV Cube features a smaller integrated speaker. Notably, Amazon leads the smart display category, which encompasses smart speakers with screens.

Amazon popularized the smart speaker with a display segment in 2017 with the launch of the original Echo Show. Google also offers its Nest Hub in various sizes, which combines the Google Assistant with a speaker and a screen.

Apple's HomeKit software, which enables control of third-party devices via iPhones, iPads, and HomePods, currently supports fewer products compared to rival systems from Amazon and Google. While the introduction of new Apple devices may not single-handedly change this, they could encourage both Apple and potential partners to invest more in the broader Apple smart-home ecosystem.