Today we are going to talk a bit about tech which wasn’t really that much of adoptions in 2016 but it leapfrogged to the top spot in the industry in 2017. Without further ado, let’s get on it.
Of course, the first and foremost… “Smart Speaker” should be on the spotlight right away. “Home Entertaining” – Smart Home – Revenue is expected to reach US$112 billion dollars in 2022 based on 27.5% annual growth rate projection. And … the holiday season push can really see the potential of the even higher growth rate between 2018 and 2022 which means that the revenue projection is going to be much higher than US$112 billion dollars by year 2022.
Google Home Mini –
From regular Google assistant in smartphones to big, chunky, but somewhat still pretty figure of the Google Home to the little tiny super adorable Google Home mini (donut). The price tag which consumers required to pay in order to own the super intelligent device dropped from $130 USD to $30 USD (in some cases, it’s even FREE – take a look at our post here).
Amazon Echo (Dot) –
That’s right. We should thank Amazon who pushed the smart speaker tech to the market. Not only that, they also get the price down to the mainstream level by introducing their Amazon Echo dot devices. Do you know that the 2nd Generation Amazon Echo Dot was able to be owned in less than 25 bucks in December 2016 already? It’s just like Apple who was able to press tablets makers around the world to put the price tag at around $500 USD level (Do you know that the 1st iPad competitor was planning to be sold for more than $1,200 USD? If Apple didn’t set the price on the tablet, the tablet would NOT have become mainstream this easy and this fast… or maybe… never); Amazon set the smart speaker (adorable version) price at sub-50 bucks level. This is the driver to get the mainstream users into the market fast and effortlessly in about 2 years (we didn’t count the original Amazon Echo device since that’s not the device Amazon uses to get everyone into using).
Internet of Things
We are talking about “Smart Lights” here but, in fact, it’s just everything IoT (should and would apply).
The other driver to boost the growth rate on the smart home adoption is the cost of acquiring a smart home settings (again… we are talking about smart lights here). It used to be a bit pricy… a 2 light bulbs setting would cost you about $70 USD. Wow… that’s something mainstream consumers would think twice to decide if they want to invest or not… since … “it’s not necessity… it’s a novelty”. In 2017, lots of players got into the smart lights market. As we all know that the healthy competitions drove the price of the products down; also, the quality has been increased significantly due to the mature of the technology (and … again … the healthy competition contributed to this too). Now … you can have a 3 to 4 lights smart home starter kit for less than 50 bucks. The additional light bulbs can be acquired by less than 9 bucks each. Most importantly, the price of these IoT items will gradually be more affordable in the next couple of years. We expect that the price of the smart light (single light bulb) will drop to less than 5 bucks in about a year or two.
Other Internet of Things such as “Smart Plugs”, “Smart Routers”, “Smart Refrigerator”, “Smart TV”, … well… actually, every consumer product which can be made a bit smarter, will be made a lot smarter. Do you know that the “air purifier” is into the “SMART” array already? That’s right. You can ask “Alexa” or “Google Home” to operate your air purifier (some models). Needless to say the thermostate and the garage door in your home.
It’s still a bit early to say that it’s a mainstream product already BUT … IT’S BECOMING A MAINSTREAM consumer good in the unpresedented rate. We all know that Telsa is the one to talk but … it’s the EXPENSIVE ONE to talk. The based model (Model S) price has dropped from $100K to $68K but … still a very pricy car to own. Despite the price point, you still can see that more and more Tesla vehicles are running on the street started in 2017. People who used to purchase Luxury brand vehicles such as Mercedes Benz, BMW, Lexus… started to purchase and embrace the Telsa (brand). They love the tech and all the gimmicks behind it. Most importantly, the quality and the value it conveys really worth the bucks spent on it.
The shinny point is that Tesla made it clear that they would get into the mainstream market. They would make the Tesla brand affordable to everyone … it’s like the iPhone to the mainstream consumers. “Everyone who wants an iPhone, has an iPhone”. So… the goal that Telsa has in mind is that “Everyone who wants to have a Telas, has a Tesla”. — Tesla Model 3 was born.
Telsa model 3 base model is about $35,000 USD which is in the range of the traditional vehicle price range. If you wanna buy an Hybrid Toyota Camry… it’s about $28k ~ $32k. A Chevrolet Volt (hybrid) is starting at $33,220 USD (MSRP is about $38,445 USD). So … is it going to become a mainstream vehicle? NOPE… IT WON’T … BECAUSE … IT will DOMINATE THE CAR MARKET not just becoming the mainstream if other manufacturers don’t up their games. Why? When you start to see consumers put brands stickers everywhere or use brands accessories or even non-related products… you know that that brand is eating the market and will be owning the market. Next time when you see people use Telsa’s pen, or put Telsa’s sticker on their Toyota vehicle, you know that their next car would most likely to be a Tesla.
2017 is just a starting point for everything autonomous. It’s scary but exciting as well… since most of our tasks will be gradually taken over by all those smart products, our lives are gradually being out of our hands (traditionally speaking). We need to re-pattern our daily routines, we need to cooperate with all those “smart” devices… also… in order to benefit the convenience those smart devices can provide, we will need to scarify our privacy… so … “How much privacy will you be willing to give?” That’s another decision you will need to make before you really dive into the future. For the future generation, they won’t have this concern at all since … the term “Privacy” will be extinct by the time they are in control of the world.
Great year 2017 & Prosperous year 2018 ~~~ HAPPY NEW YEAR 🙂