Apple unveiled the Apple Home Collection, a lineup of nine smart home accessories built with LG Electronics and Schneider Electric. A Motley Fool analyst argues the products could lock customers deeper into Apple's ecosystem and add Services revenue. The launch also lands as new CEO John Ternus faces pressure to release new products.
Apple unveiled its Apple Home Collection this week, a set of nine smart home accessories developed with LG Electronics and Schneider Electric. Some accessories arrive starting in December, with the rest following in early 2027.
Partners build the devices, iPhone controls them
Motley Fool analyst Catie Hogan calls the thermostats, smart locks and cameras a natural progression for Apple. LG and Schneider manufacture the products, while the user's iPhone controls every device through the Home app. In Hogan's view, that makes the iPhone stickier and harder to switch away from.
Hogan also points to the home camera, whose footage is stored in the user's iCloud. She argues this could give Apple another revenue stream with limited risk, because outside partners handle manufacturing.
Pressure on a new CEO
Wall Street, however, was disappointed by Apple's conservative fourth-quarter growth guidance of 9% to 11%. Hogan says the home lineup gives long-term investors another reason to stay bullish, and calls it an important move for CEO John Ternus, who faces pressure to innovate.
Hogan expects the collection to boost Services revenue over the coming years. The stock sits at an all-time high, and its market cap is hovering around $5 trillion.
Source: The Motley Fool
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