According to The Financial Times, Apple (NASDAQ:AAPL) is looking to unveil a new smart home platform at its WWDC developer conference next week, which could facilitate a wide range of new products and allow them to interact directly with iOS devices. Google (NASDAQ:GOOG) has already placed its big bet on the smart home in the form of its $3.2 billion acquisition of Nest earlier this year.
However, Apple and Google have very different business models, and it's here that Apple thinks it could have an advantage. Since Google's business relies on advertising, which inevitably ties into user data, Apple feels that it can offer more privacy to consumers. Apple has no interest in selling ads, so it doesn't need to turn around and sell any data that's collected.
Google recently mentioned the possibility of delivering ads through connected home appliances, including thermostats. That hit a nerve as Nest's smart thermostat was the most obvious target. Yet, Nest proactively shot down any speculation that ads would be coming to its device.
In this segment of Tech Teardown, Erin Kennedy discusses Apple and the connected home with Evan Niu, CFA, our tech and telecom bureau chief.