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What is Apple’s Internet of Things Strategy?
The Internet of Things is growing, and Apple knows it. By 2025, Cisco Systems says there will be 50 billion Internet of Things (IoT) devices. The IoT will generate more than $7 trillion in revenue just five years from now, according to IDC. By 2020, more than 20% of U.S. consumers will own a smart watch. Companies will ship 1.9 billion connected home devices, bringing in about $490 billion in revenue by 2019.
One of Apple’s IoT strategies is the connected home. Right now, there are about 200 million connected homes worldwide, but that number will jump to 700 million by 2020. Apple’s HomeKit allows home automation apps to control the thermostat, lighting, security, door locks, etc., all through one system on the iPhone and iPad. By creating a platform that allows connected devices to communicate with each other, Apple is ensuring that its own devices will be a key component in controlling connected homes.
Apple is taking its technology on the road, too. By 2020, there will be 250 million connected cars on the road, many of which will share driving information with each other and transmit data. Apple is dabbling in car technology right now with its Car Play infotainment system. But the Wall Street Journal reports that Apple will launch its own car by 2019. Apple purchased a $138 million building with garage bays, has reserved vehicle test tracks, and has hundreds of Apple employees working its automotive project, codenamed “Titan.”
Apple’s also focusing its IoT attention on wearables. Smartwatches provide new ways to deliver information, and can track our individual health like never before. As IoT systems become more commonplace in homes, cars, hospitals, etc., the Apple Watch will become our keys, identification, wallet, and a 24/7 health monitoring device. The Apple Watch is already taking the lead, and is expected to be the dominant smart watch player for at least the next four years, according to research by BI Intelligence.
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