Why Google’s smart home bet may be a flop

Google just made a big push to own the smart home. But its efforts may be in vain.

Nest, which is owned by the search giant, rolled out its new line of smart home products on Wednesday, and while the update to the devices were impressive, the company still has one big problem. Nobody seems to want a connected home. According to a recent report from Argus Insights, in May consumer interest in smart home products dropped 15% below where it was a year ago.

While Argus’s data is based soley on the volume of consumer reviews from a slew of different retailers and not on sales figures, other data also suggests that U.S. consumers just aren't that into the idea of home automation. Only about 13% of U.S. households with broadband report owning at least one smart home device, according to a report  published by Park Associates and the Consumer Electronic Association last year. And 62% are unfamiliar with smart home products, according to the report.

Part of the reason consumers haven’t fallen in love with the idea of decking out their homes in smart devices is simply because they want to make sure the cost is worth it. While all of Nest’s new products fall into competitive pricing categories, the company will still have to convince the masses that dropping a few hundred dollars here and there will pay off in the long run. It's also worth noting that while data from Argus suggests people aren't interested in home automation devices, Google Trends - which shows what people are searching - shows that people are actually searching more for things like "smart home," "smart thermostat," and "connected home".

Read more at Business Insider

Image Credit: Nest

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