Opinions expressed herein are those of Brett Ewing and S. Lance Mitchell and do not represent those of Centaurus Financial, Inc.
Google Nest Failure Sheds Light on Real Industry Trends
- The growth in the home automation and overall internet of things (IoT) industry has been staggering over the last few years and should continue to multiply as products continue to become more affordable
- The exceptional growth and the promise of more has enticed almost all of the large players in the technology world to take a crack at innovating market penetrating products, however more and more are starting to fail, and these failures—the most recent from one of the best funded in the entire industry, Google Nest—are forcing companies to go back to the drawing board to figure out what they are missing
- One of the pioneers in the sector, Alarm.com (Ticker: ALRM), and their CEO Steve Trundle has been speaking on the misunderstanding the product based companies have on the industry for quite some time now
- Trundle feels that the wave of new consumer gadgets with single purpose mobile apps & sleek marketing but narrow use cases is quickly starting to fade “The consumer doesn’t really want a set of disparate devices that they have to install & maintain themselves”
- Instead consumers are looking for a holistic home control security system with security at the core & the mainstream consumer is resoundingly rejecting the Do-It-Yourself approach the large consumer brands are throwing at them
- This is specifically why his company, Alarm.com, is experiencing such rapid compounding growth while other larger companies with deeper pockets are spending their way into oblivion seemingly oblivious to what the consumer really wants
- com works with local dealers in a grassroots way to provide a professionally installed & maintained ecosystem of devices that controls the entire home
- The Alarm.com software then connects the broad array of smart devices, making them easily controlled through a single intuitive mobile app
- A survey conducted by TNF Associates for Intel found that 82% of Americans agree that integrated security is a priority for living in a smart home & that ALL smart devices should be secured through a single integrated security package
- Google Nest has FINALLY figured this out & sources say that they are beginning to develop their own security platform, but it is sure to be a DiY approach & they have already fallen way behind
- Little Alarm.com continues to show a track record of understanding the industry they helped pioneer that far exceeds the big guys who are just grasping at any straw they can find to try and enter it
Brett Ewing and S. Lance Mitchell may own shares of ALRM personally and also may manage discretionary accounts which include ALRM shares in the portfolio. The views and opinions expressed herein are those of Brett Ewing and S. Lance Mitchell alone and do not reflect the views of Centaurus Financial, Inc., its affiliates, agents or employees. The information set forth herein has been obtained from sources believed to be reliable; however no guarantee is made or implied with respect to its accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision. This information has been provided solely for informational and educational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy or sell any securities.
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