Recurring revenue, K-factor, long shelf life and low actuation rate.
Few verticals outside of video storage could support a monthly subscription putting negative pressure on supporting a shipped product.
Most smart home products are anti-social and had a low k-factor. You don’t want to share access to your scale to more than a handful (2?) people. This makes market adoption slower than a social networking app.
Touched on in the video but median shelf life for these $200 products is 8 years. Thats very “bad” relative to most other consumer hardware. Especially say a $1500 smartphone that’s replaced every 2 years.
Actuation rates on many categories are abysmal. Your smart smoke detector may go years without sending you a message. Compare to say screentime for ChatGPT on mobile averaging hours per day.
Interestingly a lot of those floundering smart home products became thriving businesses when pivoting to smart office focus. Subscriptions go up, user counts go up, utility goes up.
Few verticals outside of video storage could support a monthly subscription putting negative pressure on supporting a shipped product.
Most smart home products are anti-social and had a low k-factor. You don’t want to share access to your scale to more than a handful (2?) people. This makes market adoption slower than a social networking app.
Touched on in the video but median shelf life for these $200 products is 8 years. Thats very “bad” relative to most other consumer hardware. Especially say a $1500 smartphone that’s replaced every 2 years.
Actuation rates on many categories are abysmal. Your smart smoke detector may go years without sending you a message. Compare to say screentime for ChatGPT on mobile averaging hours per day.
Interestingly a lot of those floundering smart home products became thriving businesses when pivoting to smart office focus. Subscriptions go up, user counts go up, utility goes up.