“In a deal surprising only for its enormous purchase price, Google has announced that it’s buying Nest Labs, the hot maker of tech-infused household devices such as thermostats and smoke alarms, for $3.2 billion in cash,” Robert Hof writes for Forbes. “Nest, which had financial backing from Google’s venture arm, has been lauded for its elegant takes on common household products, and it seems clear that it has no intention of stopping at thermostats and smoke alarms.”
“Internet-connected smart devices continue to proliferate in the home and beyond, it’s likely that they will create, or disrupt, multibillion-dollar markets in much the same way Apple did for smartphones and tablets,” Hof writes. “That’s why a Nest backed by Google, now the second big pillar in mobile devices with its Android software and hardware, could blunt apparent intentions by Apple to move beyond computing and communications devices. While Apple has not announced plans for other devices, it’s said to be working on a smart watch and a television, and many observers believe it’s likely Apple would be interested in offering new takes on other home and consumer devices.”
“While the price seems dear for a company with only two products, those products clearly impressed Brin and Page with their potential. (Page, who took over as CEO with a mission for Google to create more beautiful products, no doubt was also impressed with the design of the Nest devices,)” Hof writes. “But in any case, that goal would seem to present a challenge to Apple, known more than anything else for producing elegant products that people can’t live without. Buying Nest gives Google a way to do the same well beyond the sphere of computing – and do it right away.”
Read more in the full article here.
MacDailyNews Take: Tim Cook: Asleep at the switch, in total command, or somewhere in-between?
While you ponder that, we’re off to peruse the complete line of Honeywell Programmable Thermostats…
Related articles:
Google to buy Nest Labs for $3.2 Billion – January 13, 2014
Tony Fadell introduces Nest Protect smoke and carbon monoxide detector – October 8, 2013
Tony Fadell, Father of the iPod: From Apple to Nest Labs, always a designer – July 24, 2013
Apple Store to sell Tony Fadell’s Nest Learning Thermostat, report claims – May 25, 2012
‘Father of the iPod’ Tony Fadell shows off his new project: Thermostats – October 25, 2011
I don’t see any strategical reason for Apple to buy Nest.
When Apple is buying companies its for their IP and knowledge, mostly, not the products they sell.
Nest products are typical third party products (just like Philips Hue). And it will pop up lots of them supporting iOS from lots of manufacturers over the coming years. I don’t think Apple should buy Honda either, for the same reason.
And I am sure that if Apple (for any inscrutable reason) want to develope similar products for iOS, they will, on their own. This kind of devices isn’t rock science, really.
…and besides that, 3.2 billion is a ridiculus sum to spend on that.
Pfft! Apple could create their own home automation gear (or buy someone else) for much less. $3.2 billion for shelf space in Lowe’s? *shakes head* Google is starting to go the way of Microsoft for making dumb expensive purchases that end up not working (see Motorola Mobility).
I was at the Apple Store Mall of America last night and they still had Nest products on the shelves. I was looking at buying three CO2/smoke detectors but I certainly will not.
Siemens, Honeywell, Johnson controls, off the top of my head, can write an iPad app for somewhat less than $3.2 billion and slap an apple design sense on the product face.
Plenty of people can integrate wifi with a smart thermostat and carbon monoxide detector, but obviously Tony Fadell and the Nest Brand are worth 3.2 bio to google. Perhaps it is Nest’s network of Cable Guys who come install these things in your home?
Fadell should be running Apple or on the board. Instead, Apple hired the operations guy and handed they keys over to a stylist instead of an engineer.
BTW- Google just bough a portfolio of over 300 patents that relate to automation- not just thermostats and smoke detectors.
While I don’t see Nest as being an Apple product, I admit I was becoming impressed with their innovation. Now, they have to go on the “don’t buy” list for the reason others have stated: I don’t need my home usages to be made public!
I wouldn’t worry. Google will do its usual p-poor job and Apple will have a better product.
I think so, it could have been a grat opportunity for Apple. Many other business opportunities to step into the home automation industry though. Several startups like Nest, Revolv, ThinkEco are reshaping the home automation industry and will lead to the connected home and the first experiences in the “Internet of things” very soon. I tried to provide an overview here http://wp.me/p2CSSk-2t
Who’s leading the innovation in your opinion? Which startups are going to have a disruptive influence in the market?