Apple's Push Into This Multibillion-Dollar Market Is Just Getting Started

Breaking down how HomeKit is just the beginning of Apple's foray into the connected home.

Andrew Tonner
Andrew Tonner
Jul 10, 2014 at 12:00PM
Technology and Telecom

Technology giant Apple (NASDAQ:AAPL) used its World Wide Developers Conference to usher in what's likely to be its next great wave of technological innovations.

Source: Apple.

Apple's Health app and HealthKit laid the foundation for the eventual launch of Apple's oft-discussed iWatch later this year. However, while the iWatch might enjoy more attention from the mainstream media these days, Apple's HomeKit smart home software could ultimately prove to be the greater financial driver for Apple investors in the years to come.

Apple's HomeKit: More ambitious than you might think
Recently a number of reports have surfaced that Apple is currently developing prototypes for several advanced hardware devices that would all be connected by HomeKit.

This news probably shouldn't come as a huge surprise for Apple aficionados. Apple has repeatedly created powerful software ecosystems around which it can sell its high-margin hardware offerings since the introduction of iTunes and the iPod in the early 2000s. And while there has been little in the way of specifics as to exactly what kind of advanced hardware devices Apple currently has in development, the prospect that Apple will create yet another powerful, multi-device ecosystem around the connected home presents another compelling bullet point in the argument that Apple's long-term growth prospects might be more robust than many investors realize. Tech and telecom specialist Andrew Tonner offers his take in the following video.