The Internet of Things (IoT) is easily one of the most powerful emerging technologies in the world today. As the IoT market for smart homes and connected cars (smart cars) continues on its path of parabolic growth, it’s clear that IoT presents historic opportunities. Today’s homes are increasingly connected, creating an enormous new smart-home market, and the smart-car market segment has become a nearly ubiquitous strategic development path for the auto industry as demand for constant connectivity soars. With functionality and convenience, SPYR Inc. (OTCQB: SPYR) (Profile) is delivering to consumers what they crave — smart hardware, software solutions and products that integrate with the Apple Inc. (NASDAQ: AAPL) ecosystem. Apple commands the largest share in the mobile devices market and will likely be dominant as the IoT market expands and consumers demand more privacy protection. Other tech juggernauts such as Amazon.com Inc. (NASDAQ: AMZN), Google (NASDAQ: GOOG), and Meta Platforms Inc. (formerly Facebook) (NASDAQ: FB) are also working on next-generation devices and control centers for fully connected cars and homes.
- “Smart” business is big business, including the home and auto markets expected to reach $207.8 billion and 225.2 billion, respectively, within five years.
- Applied MagiX Inc., a unit of SPYR, operates in the IoT market, developing and reselling Apple-compatible products with an emphasis on smart-home and smart-car products.
- Applied Magix’s first product, MagixDrive, converts wired Apple CarPlay into a wireless system.
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Billions of Dollars, Parabolic Growth
According to Statista, the current smart-home market is ~$126.11 billion and compounding at 13.3% annually to reach an estimated $207.81 billion by 2026. In fairness, it’s difficult to gauge just how big the smart-home market will be considering new innovations are disrupting every corner of the space. It’s no longer just about thermostat tracking. Today, meals can be cooked, refrigerators controlled, and security monitored; the list is endless. Essentially everything under the categories of automating energy, entertainment, access, comfort, daily tasks, connectivity, and even wellness is target for the tech space to make people’s lives more convenient at home.
The global smart-car market is growing at a similar clip. Allied Market Research reports the market at $63 billion in 2019 and anticipates expansion at an eye-popping compound annual growth rate of 17.1%, which will take the market to $225.2 billion by 2027. Analysts at AMR see a confluence of drivers steering the market higher, with a rising demand for connectivity solutions, a surge in need for constant connectivity, increased dependence on tech, and an upsurge in tech-savviness all contributing to the upward swing.
SPYR Inc. (OTCQB: SPYR) is a savvy tech company that, through its wholly owned subsidiary Applied MagiX Inc., develops, creates and resells Apple(R) ecosystem-compatible products with an emphasis on the smart-home market. In addition to meeting strong consumer demand, SPYR is aggressively identifying and targeting acquisitions that will grow its footprint and expand the products it offers consumers, including companies developing artificial intelligence (AI) and a diverse portfolio of smart-technology products.
Rather than spread itself a mile wide and two inches deep trying to solve problems with compatibility, SPYR and Applied MagiX have hooked their wagon to arguably the largest, most affluent and deeply passionate group of consumers in the world: Apple users. Ask anyone using Apple products what they like best and there’s a good chance that the answer will be about the reliability, interoperability and simple, seamless transitions between devices. SPYR has locked in with these consumers and is leveraging that loyalty with its suite of consumer-friendly products.
Insatiable Consumer Appetite
The coronavirus pandemic was devastating to many industries, but not so with the home-device sector. Consumer demand only increased as people spent on amenities for their homes, including smart doorbells, security systems, lights, cameras, speakers, appliances and thermostats. Consumers became more familiar with smart devices, an unintended marketing and education benefit to manufacturers. That familiarity has further spurred the uptake of IoT.
The Apple HomeKit is regarded as one of the best smart-home technologies on the market, and SPYR’s Applied Magix capitalizes on that reputation, offering cameras and a series of sensors built on the Apple HomeKit framework. Instead of relying on individual apps, all HomeKit-compatible devices are connected through Apple’s HomePod (and mini), iPhone, iPad, Apple TV, Mac or Apple Watch. Of course, Siri is there as a virtual assistant to help via voice commands as well.
Smart Move
In June 2021, SPYR’s Applied Magix launched its first branded and inaugural Apple CarPlay product: MagixDrive. MagixDrive brings wireless technology normally reserved for only elite brands to any vehicle equipped with a wired version of Apple CarPlay. People simply plug in the MagixDrive just as they would their phone to connect it to the infotainment console, and the device takes it from there. Set up in a matter of seconds, the phone will automatically connect wirelessly every time in the future, providing access to music, streaming services, contacts, navigation and other apps without ever leaving a pocket or purse.
Applied Magix is running a national television commercial marketing MagixDrive. Last week the company announced that it is also developing a digital marketing campaign to drive additional sales. The company already has established a presence on ecommerce sites such as eBay and Amazon.com and is aiming to solidify its brand through a social media push on a variety of sites and apps, including Facebook, Reddit, YouTube, Instagram and TikTok; the efforts include targeting influencers with significant followers for each channel.
This month, Applied Magix pulled back the curtains a bit to give the investment and tech communities a sneak peek at its secret lab where the company works its magic developing new products that expand beyond the Apple sphere. “The secret lab is very much like Apple’s Advanced Technology Group (ATG) from years ago,” said Applied Magix CEO Dr. Harald Zink. “Not everything being explored there is necessarily destined for release as a product or would necessarily see the light of day, beyond exploration and technology demos. Nevertheless, much of the knowledge being gained will find its way into our products and services, while some of what we explore is based on annoyances we encounter that we believe we can design a better solution for.”
Massive, Loyal Customer Base
There are nearly 600 million Apple users worldwide and 1 billion Apple devices (and counting). The $3-trillion company controls the largest share of the mobile phone market by far, growing its share in Q4 2021 to 56% of the overall market from 47% in Q3. Samsung was the next closest at only 22%. Apple customers are always atop the list for loyalty, with more than 90% of iPhone users sticking with the brand when they buy another phone as shown in a Consumer Intelligence Research Partners study evaluating three years’ worth of data for the major smartphone brands.
SPYR’s Applied MagiX leverages the Apple brands with products that provide convenience and functionality to appeal to its customers. These are ideal consumers because they know they want Apple-compatible goods and aren’t afraid to pay extra for quality. The average Apple iOS user spends $1,212 annually on tech (twice as much as an Android user), adopts Apple product at younger ages than competitors, and are willing to spend $3,000-plus on smart-home products. This is an sweet-spot target for SPYR’s Applied MagiX, and as Apple continues its growth curve, SPYR intends to grow in tandem.
Working Together
Sometimes majors in the industry step outside their own walls to work together to cumulatively come up with a solution for challenges that plague everyone. One particularly stubborn issue slowing consumer uptake has been a universal connectivity standard. Aiming to square this circle for the good of all, more than 200 companies chipped in to create an open-sourced connectivity standard, branded Matter. The idea is that by establishing a standard communication protocol, smart devises will work smoothly together regardless of manufacturer, which will further accelerate consumer adoption. Four companies have taken the lead in developing Matter — Apple, Amazon, Google and Samsung — all of which will benefit from a Matter success. In the end, the consumer will benefit the most.
Apple Inc. (NASDAQ: AAPL) HomeKit options are constantly growing and evolving, now including cameras, light bulbs, smart outlets, electronic deadbolt, motion sensors, thermostats, a smart garden and much more. With Apple’s Home app, users can easily and security control their HomeKit accessories from all their Apple devices. They can turn off the lights, see who is at the front door, or adjust the living room temperature — and the new HomeKit Secure Video capability and HomeKit-enabled routed makes home even more secure.
Amazon.com Inc. (NASDAQ: AMZN) is the king of ecommerce and a big player in the “smart” world. The company was savvy enough to buy smart video doorbell company Ring for $1 billion in 2018, thrusting it into the home-security market and giving it another outlet for its Alexa voice assistant. The company today has its hands in all things smart home and then some, ranging from speakers to tablets to home monitoring robots and back again.
Google (NASDAQ: GOOG) was another visionary in the smart-home business, acquiring Nest for $3.2 billion in 2014. Nest has grown from the world’s best-known smart thermostat into a wide product bag including cameras, outdoor security lights, video communications, doorbell, speakers, smoke and carbon monoxide detectors, etc. While its team works with Matter, Google intends to launch a Google Home Developer center this spring.
Meta Platforms Inc. (NASDAQ: FB) recently changed its name from Facebook, a move that speaks directly to the company’s vision that the future of communications will be on the next digital frontier called the metaverse. Facebook is not a social media company; it is a technology company that is also playing in the smart-home market with its Portal family of video products with Alexa built in as a voice assistant.
The smart-home and smart-car markets are moving mainstream at a parabolic pace, replacing arcane technologies such as traditional hand-turn thermostats, push doorbells and manually operated appliances. The future is now, and the opportunity in IoT appears endless.
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