Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

Builders ditching Nest products as Google takes complete control

10/22/2019

Download PDF

Residential builders across the nation are ditching Nest smart-home products as parent-company Google limits Nest’s compatibility to Google devices, according to a Bloomberg report published on Thursday.

When Google purchased Nest for $3.2 billion in 2014, Nest’s smart thermometers, smoke alarms and locks were compatible with a wide range of products from other manufacturers through the company’s “Works with Nest” program.

However, after a failed attempt to sell Nest to Amazon in 2016, Google decided to merge Nest into its internal hardware division that includes Google’s laptop and tablet products, explained ArsTechinca in a timeline.

During the company’s I/O in May 2019, they announced Nest would be fully integrated into Google — meaning that users would need a Google account and access to Google Home and Google Assistant to use their thermometers, smoke alarms and locks.

“Google’s home automation hardware is now Nest,” a Wired article published shortly after the announcement reported. “But before the smart-thermostat startup – acquired in 2014 – could become one of Google’s biggest brands, it had to be broken down and devoured by the tech giant.”

Fast forward six months, and it seems Google’s bet isn’t paying off, as one of Nest’s largest consumer demographics — homebuilders — are turning their backs.

The home inspection is not just for homebuyers Use pre-inspections as a home seller differentiator READ MORE

“But for builders, it’s just a pain because Nest devices no longer work so well with the other gadgets they install in homes, such as audio and entertainment systems, and alarms and other security gear,” Bloomberg’s report states.”It’s also a less enticing user proposition with all the privacy permissions that Google Assistant requires.”

Two of the nation’s largest building companies, CA Ventures, and Bravas Group, told Bloomberg they’ve begun using other brands to fulfill their smart home needs.

“We’ve stopped,” CA Ventures Vice President of Technology Mark Zikra said. “In an apartment complex, we’re talking about 200, 300 devices that would be installed in one swoop, and then all of a sudden everyone moves in.”

“We don’t have the luxury of being able to say, ‘Hey are you a Google person or are you a Honeywell person?’”

Bravas Group Chief Technology Officer Sean Weiner says Google’s decision to limit Nest’s compatibility places builders at a disadvantage.

“If we put that control in the hands of Google, we’ve lost that control,” he noted.

“We were more or less forced into the switch,” added independent contractor David Berman. “When people buy a connected device, they expect it to connect. That’s not something that happens with Nest anymore.”

As builders find alternatives, Nest’s sales could take a hit. Google disclosed Nest’s financials for the first time in April 2018 when Nest generated approximately $726 million in revenue.

However, financial news site The Motely Fool says that was likely a “one-time peek,” since Google recategorized Nest’s place within the company’s quarterly financial reports.

“Going forward, Nest will be aggregated within ‘Google other revenues,’ which includes other hardware products like Pixel phones, Google Cloud, and digital content sold through Google Play,” The Motely Fool reported.

“The search giant reported $14.3 billion in other revenues last year, and retroactively adding Nest’s sales to that segment brings Google other revenues to just over $15 billion for 2017.”

Google refused to share specifics about Nest during its latest earnings call, keeping in line with what MarketWatch calls the company’s “habitual reluctance to break out specific financial performance figures.”

Email Marian McPherson.

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • Mission Chronicle Newsletter July 24, 2023

    Mortgage rates continued to press downward last week after the previous week's CPI data pointed to e...

  • Mission Chronicle Newsletter Feb 20, 2023

    Despite the recent downward trend in mortgage rates and hopes that the Fed was nearing the end of it...

  • Mission Chronicle Newsletter Feb 6, 2023

    The Federal Reserve meeting ended as market participants expected, with a quarter-point increase and...

  • Mission Chronicle Newsletter Dec 26, 2022

    Mortgage rates held relatively steady last week as most economic news came in better than expected.C...

  • Mission Chronicle Newsletter Dec 12, 2022

    Rates managed to move slightly downward last week as recession fears grew amid hopes that the Fedis ...

  • Mission Chronicle Newsletter Dec 5th 2022

    Mission Chronicle Newsletter Dec 5th 2022. Platforms: Browser, mobile-responsiveIdeal for: Leasing a...

  • Inman Review: Tenants and leasing teams get better connected with RentTango

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Tech Review: Smart Alto puts people first in its innovative lead qualification solution

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Refreshed and nurture-savvy, Market Leader’s CRM deserves your attention

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • The top 4 tips to improve your negotiation skills

    In today’s luxury real estate market, strong negotiation skills are an asset—you might even say ...

June 2024
Mon Tue Wed Thu Fri Sat Sun
 12
3456789
10111213141516
17181920212223
24252627282930

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...