Smart products on the rise, says Markit
27 January 2015 London
Image: Shutterstock
One of the standout product categories featured at this year’s Consumer Electronics Show (CES) in Las Vegas was smart/connected home products which promise consumers the ability to remotely monitor and control their home through web enabled tools, according to Markit.
The emergence of the product category has not gone unnoticed by the growth hungry tech giants, which look to establish themselves in the space, much in the same fashion as they did in mobile space.
Chief among these is Google, whose Nest product lets users control and monitor their home’s thermostat and smoke alarm and Samsung, which launched its Smart Home platform at CES with initial functionality similar to Nest.
Analyst at Markit, Simon Colvin, commented: “This renewed attention on the connected home also looks set to stir up the competitive space for industry leader and newly listed ADT.”
The company, which recently spun off from tech conglomerate Tyco, is arguably the leader in the connected home space with a 25 percent market share of the $11 billion market for security and home automation, according to a recent investor presentation.
Colvin continued: “The big debate raging around ADT is whether the firm will hold on to its over six million customer base as new web based automation and security services enter the market; a trend that looks set to accelerate given the recent architecture announcements.”
ADT has already launched its Pulse system which offers some third party integration, and was recently rumoured to be in talks with Nest about a potential partnership. Whether or not Nest users, who can monitor their homes’ temperature through smartphones, will pay for ADT’s service remains to be seen, according to Markit.
One trend that has mirrored the rise of Nest has been an increased appetite to sell ADT shares short. The percent of ADT shares now out on loan stands at 21 percent of shares outstanding. This makes ADT the fifth most shorted firm in the S&P 500.
Short sellers have a good track record in ADT and the previous surge in short interest was followed by a 25 percent drop in ADT’s share price, owing to a “disappointing” earnings announcement according to Markit.
The emergence of the product category has not gone unnoticed by the growth hungry tech giants, which look to establish themselves in the space, much in the same fashion as they did in mobile space.
Chief among these is Google, whose Nest product lets users control and monitor their home’s thermostat and smoke alarm and Samsung, which launched its Smart Home platform at CES with initial functionality similar to Nest.
Analyst at Markit, Simon Colvin, commented: “This renewed attention on the connected home also looks set to stir up the competitive space for industry leader and newly listed ADT.”
The company, which recently spun off from tech conglomerate Tyco, is arguably the leader in the connected home space with a 25 percent market share of the $11 billion market for security and home automation, according to a recent investor presentation.
Colvin continued: “The big debate raging around ADT is whether the firm will hold on to its over six million customer base as new web based automation and security services enter the market; a trend that looks set to accelerate given the recent architecture announcements.”
ADT has already launched its Pulse system which offers some third party integration, and was recently rumoured to be in talks with Nest about a potential partnership. Whether or not Nest users, who can monitor their homes’ temperature through smartphones, will pay for ADT’s service remains to be seen, according to Markit.
One trend that has mirrored the rise of Nest has been an increased appetite to sell ADT shares short. The percent of ADT shares now out on loan stands at 21 percent of shares outstanding. This makes ADT the fifth most shorted firm in the S&P 500.
Short sellers have a good track record in ADT and the previous surge in short interest was followed by a 25 percent drop in ADT’s share price, owing to a “disappointing” earnings announcement according to Markit.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
