Canada

Apple is about to challenge Amazon and Google with a major entry into the smart home gadget market

Apple Inc. works on a range of devices aimed at challenging Amazon.com Inc. and Google in the smart home market, including new displays and a faster TV set-top box, after it relaunched its larger HomePod speaker.

The push into smart displays will start with a tablet product — essentially a low-end iPad — that can control things like thermostats and lights, display video and handle FaceTime chats, people familiar with the plans said. The product can be mounted on walls or elsewhere using magnetic fasteners, positioning it as more of a home gadget than a regular iPad.

Apple has also discussed the idea of ​​building larger smart home displays, according to the people, who spoke on condition of anonymity because the discussions are private.

Although the iPad already has smart home features, standalone smart home devices—often designed as countertop or wall-mounted devices—are becoming increasingly popular. Amazon sells a line of Echo Show products with displays, while Google offers its Nest Hub. And the last company – part of Alphabet Inc. – prepares the Pixel Tablet with an additional stand. Apple has also discussed creating a home stand for its current iPads.

The tech giant, based in Cupertino, California, has struggled domestically and ceded much of the market to its rivals. Its current devices remain limited in functionality, with Apple’s Siri voice control service lagging behind Amazon’s Alexa and Google Assistant. The new devices — along with upcoming changes to Siri — aim to turn Apple’s fortunes around.

An Apple representative declined to comment.

Earlier on Wednesday, Apple launched the new HomePod speaker. The $299 device is a redesigned version of the original, powered by the same chip as last year’s Apple Watch. There is an updated media panel at the top and a new sensor to determine the temperature in the user’s home. Bloomberg reported that the new speaker was imminent earlier this year. The temperature monitor first appeared on the HomePod mini in 2021, although it was not yet functional then.

The original HomePod was discontinued in 2021 after mediocre sales, with customers balking at the price and limited functionality. It originally started at $349, before a price cut — a rare move for Apple — brought it down to $299. Apple introduced the $99 HomePod mini in 2020, which proved more popular, taking about 13 percent of the smart speaker market, according to Strategy Analytics.

As part of its push for smart home customers, Apple has agreed to support the new Matter protocol, which allows competing gadgets to work together. The company also recently redesigned the Home app, which helps control its devices.

Beyond future smart displays and new speakers, Apple is working on revamping its TV box. A new version with the current design is in the works for the first half of next year with a faster processor, the people said.

Apple last updated its TV device in October, giving it the iPhone 14’s A15 chip and a remote control that uses the USB-C standard. Despite regular efforts to improve the product, the Apple TV box made limited progress in the market. It holds just a 5% share, according to Insider Intelligence, compared with 30% for Amazon and 28% for Roku Inc.

While the new version will support an upgraded chip, it likely won’t support 8K video streaming, a still nascent video format.

Work on a long-awaited product that would combine the TV box with a smart speaker and a FaceTime camera also suffered setbacks, although that project is still ongoing. The device was originally scheduled to be released this year, but the timing slipped. Likewise, development schedules for smart displays have been delayed and likely won’t launch until next year at the earliest.

Learn how to navigate and build trust in your business with The Trust Factor, a weekly newsletter that explores what leaders need to succeed. Register here.