Amazon Has Reportedly Gained Edge Over Apple in Deals With Smart Home Builders

Amazon appears to have gained an edge over Apple in deals with smart home builders, according to The Information.

homekit home
The paywalled report claims that an increasing number of home builders have agreed to partnerships with Amazon to build homes with preinstalled Alexa-enabled accessories, rather than HomeKit-based products from Apple.

Last year, for example, Amazon reportedly struck a large-scale deal with Lennar, one of the biggest home builders in the United States. Lennar first had a partnership with Apple in 2016, but the company is "prioritizing Amazon now."

As part of its deal, Lennar gets access to Amazon's growing army of so-called Amazon experts, the company's in-home service team, to go around to every new homeowner and make sure their smart home is hooked up. Every new Lennar home comes with Echo Dot speakers and Echo Show displays to connect with Alexa, as well as a suite of connected doorbells, locks, light switches and thermostat.

A few other builders, such as Arizona-based Meritage Homes and Shea Homes, also said they considered Apple but opted for Amazon.

"Apple is closed source about what will talk to their system, so we shied away from it," said CR Herro, a vice president with Arizona-based Meritage Homes. "I don't want to restrict what I think the future could be because I have no idea what it will be."

The report claims that Apple requiring accessory makers to install an authentication chip for HomeKit compatibility has "significantly limited the number of new devices getting to market," but that is no longer the case, as iOS 11.3 introduced software-based authentication for accessories to interface with HomeKit.

Meanwhile, some builders believe there is a downside in allowing Amazon to embed a network of Alexa-powered devices that can collect data into homes, ranging from privacy concerns to competitive reasons.

Startup home builder Kasita, for instance, thinks these traditional players are giving up a huge amount of business by linking up with Amazon. Kasita uses Alexa devices for performing voice control in its "micro homes," but tries to maintain its relationship with the consumer by providing its own app and wants to offer its own services to consumers in the future.

"Amazon owns you when you buy anything online," said Jeff Wilson, founder and chairman of Kasita. "Do you really want them owning home experiences?"

While new homes are estimated to account for only about 10 percent of residential home sales in the United States, Apple believes the best way to introduce homeowners to HomeKit is from the get-go.

"We want to bring home automation to the mainstream," said Greg Joswiak, a marketing executive at Apple, in an interview with Bloomberg. "The best place to start is at the beginning, when a house is just being created."

Top Rated Comments

smulji Avatar
71 months ago
I think Apple is a much more reliable home automation platform, as soon as Apple makes Siri better Amazon will be in big trouble.
Questions is when? Apple has had 7 years to make Siri better.
Score: 26 Votes (Like | Disagree)
ambientdaw Avatar
71 months ago
I laugh at this whole market. The minor conveniences people gain for the massive things they surrender; privacy and security. The mind boggles at how anyone would go for this tech.
Score: 22 Votes (Like | Disagree)
Spock Avatar
71 months ago
I only buy Alexa compatible home automation hardware because the Echo can be had for $29 and works great. I have three in my house and they control lights in those rooms, can tell me the weather and play things off my phone via Bluetooth. HomeKit and HomePod are just to expensive for me right now. I’m not saying HomePod is a bad product but Apple is far to late to the game at this point.
Score: 18 Votes (Like | Disagree)
Cmbqwerty79 Avatar
71 months ago
When smart homes start getting hacked homeowners will want to know which company provides a more secure system. Then we will see who wins out in the end.
Score: 18 Votes (Like | Disagree)
HJM.NL Avatar
71 months ago
A walled garden is only nice if the plants in that garden are fresh and healthy. If you have little choice and pay double the price for the same product and functionality, you feel trapped in that garden.
Score: 11 Votes (Like | Disagree)
PastaPrimav Avatar
71 months ago
This is pretty apparent, and its a shame. Way more Alexa adoption than HomeKit from what I've seen.
Score: 9 Votes (Like | Disagree)

Popular Stories

iOS 17

Apple Releases iOS 17.0.1 and iPadOS 17.0.1 With Bug Fixes, Plus iOS 17.0.2 for iPhone 15 Models

Thursday September 21, 2023 10:28 am PDT by
Apple today released iOS 17.0.1 and iPadOS 17.0.1 updates for the iPhone and the iPad, adding bug fixes to the new software. The iOS 17.0.1 and iPadOS 17.0.1 updates come just a few days after Apple launched iOS 17 and iPadOS 17. The software, which is build 21A340, can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. There is a...
iPhone 15 Pro Lineup Feature

iPhone 15 Models Feature New Setting to Strictly Prevent Charging Beyond 80%

Tuesday September 19, 2023 2:04 pm PDT by
All of the iPhone 15 and iPhone 15 Pro models feature a new battery health setting that prevents the devices from charging beyond 80% at all times when enabled, as confirmed by The Verge's Allison Johnson during a Q&A session today. The new setting is separate from the pre-existing Optimized Battery Charging feature on iPhones, which intelligently delays charging past 80% until a more...
emojipedia 15 1 emoji

Emoji Coming to Future iOS 17 Update Include Shaking Head, Brown Mushroom, Lime, Phoenix and More

Tuesday September 19, 2023 12:43 pm PDT by
As Apple was announcing new iPhone models last week, the Unicode Consortium was officially approving new emoji characters that are set to be added to smartphones starting in 2024. Mockup of new emoji from Emojipedia Approved Unicode 15.1 emoji include phoenix, lime, an edible mushroom, shaking head vertically (as in a "yes" nod), shaking head horizontally (a "no" head shake), and broken...
iPhone 15 Pro Max 5x Optical Zoom Limit Feature 1

Apple Explains Why iPhone 15 Pro Max is Limited to 5x Optical Zoom

Wednesday September 20, 2023 9:52 am PDT by
In an interview with Numerama's Nicolas Lellouche, Apple's VP of camera software engineering Jon McCormack explained why the iPhone 15 Pro Max's tetraprism lens system is limited to 5x optical zoom, instead of 10x like on Samsung's Galaxy S23 Ultra. The interview is in French, so quotes below are computer translated. Apple says the Telephoto lens on the iPhone 15 Pro Max features the...