Apple strategy in 'smart home' race threatened by Amazon

Stephen Nellis for Reuters:   In less than a year, Amazon's combination of the Echo speaker system and the Alexa voice-controlled digital assistant has come close to delivering on the elusive promise of easy-to-use technology that can control gadgets in the home with a few spoken words.

Yet Amazon.com Inc's (AMZN.O) surprise success sets up a long-term battle with Apple Inc. (AAPL.O) and Alphabet Inc's Google (GOOGL.O) for primacy in the connected household. And the contours of that competition are following a classic tech industry dynamic.

Amazon is pursuing an open-systems approach that allows quick development of many features, while Apple is taking a slower route, asserting more control over the technology in order to assure security and ease-of-use.

The strategic importance of the "connected home" niche looms large: Amazon wants a way to own its customer interactions -mainly shopping online - without an Apple phone or a Google Web browser as an intermediary.  Apple needs to keep the iPhone at the center of customers’ lives, and has built a whole home automation architecture, called Homekit, into its smartphone.  Cont'd...

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