Perceived High Smart Home Costs Drive Vendors to Lower Entry Barriers

Perceived high prices are a top barrier to smart home adoption, said Parks Associates Tuesday, leading providers and manufacturers to launch lower priced products and discontinue some premium products. It cited Apple’s HomePod mini and a new, lower priced Google Nest thermostat with a lean feature set. Some 44% of consumers who don’t own or plan to buy a smart home device gave price as the top reason, followed by perceived lack of benefits and data and privacy concerns, said Parks. “Companies are betting that getting one device in the home, even as a loss leader, will convince consumers of the value of smart home devices and inspire future purchases,” said analyst Patrice Samuels.