Samsung has reportedly pays $200 million to ramp up its home automation push by agreeing to acquire home automation specialist SmartThings in a deal reportedly worth $200 million.
Founded in 2012, U.S.-based SmartThings offers a range of connected devices for the home, from light fittings and power outlets to door locks and motion sensors. They all connect to a central hub that allows customers to control them via a smartphone application.
SmartThings has also developed an open platform that enables customers to use the app to control smart home products made by other vendors. The same platform is also open to third-party developers who can use it as the basis for their own home automation apps.
“As an open, standards-agnostic platform for the Internet of Things, our vision has always been to innovate, build, and make the world smarter, together,” said Alex Hawkinson, founder and CEO of SmartThings, in a statement. “With Samsung behind us, we will be able to attract more device makers and developers to unlock the limitless possibilities of the consumer Internet of Things.”
SmartThings will become part of the Samsung Open Innovation Centre (OIC) but will operate independently with Hawkinson remaining at the helm.
“Connected devices have long been strategically important to Samsung and, like Alex and his team, we want to improve the convenience and services in people’s lives by giving their devices and appliances a voice so they can interact more easily with them,” said David Eun, head of the OIC.
“We are committed to maintaining SmartThings’ open platform, fostering more explosive growth, and becoming its newest strategic partner,” he said.
In a research note, Analysys Mason said the acquisition should help Samsung connect two separate core businesses: consumer electronics like smartphones and tablets, and domestic appliances like washing machines and refrigerators.
“Its competitors Apple and Google lack the appliances in the home that Samsung has, while domestic rival LG, although it also supplies domestic appliances as well as consumer electronics devices, lacks a strong presence in the smartphone and tablet markets,” Analysys Mason said.
We see some problems with this.
Firstly, how many people actually want this as we have heard, completely unsubstantiated and off the record, that sales of Samsung’s line of connected appliances have been, will we say, less than stellar. Reports would seem to indicate that it really wasn’t worth the effort.
This will come as little surprise, especially so in the recent financial climate where people are not spending on premium appliances and in general, like much of the trade, most customers struggle to see the point of internet enabled appliances.
The next big question is, how long will these products remain in service?
With fast moving technologies people expect that they may have to upgrade after a few years at most but, with large appliances that replacement cycle is not expected to be so short, even if it has gotten shorter in recent years.
Then there’s security issues, which have been much publicised of late in regard to the internet of things.
On top of which, will Samsung’s platform play nice with others? We’d doubt it.
