IKEA is looking to broaden its smart-home ecosystem with a new business unit

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IKEA is looking to broaden its smart-home offerings and carve out a leading role with Amazon and Google:

The company plans to invest in the new unit and expand its range of devices, which currently includes smart light bulbs, smart plugs, and other connected devices to automate home control. IKEA's large retail base and low-cost smart home options could put the company in a position to establish a presence in the connected home market and supply a variety of devices consumers will actually use.

IKEA also followed much of the market in adding support for all three major US voice assistant ecosystems — Amazon's Alexa, Google's Assistant, and Apple's Siri — so that consumers could easily change settings. It followed up with a smart plug and smart blinds, the latter of which will make their long-delayed USin October. With its new unit, we expect IKEA's smart home portfolio to move into new areas of the home.

IKEA can use its retail space to present consumers with a tangible example of the smart home, offering it a marked advantage over competitors like Samsung and Google-owned Nest, which sell their devices either online or through partner retailers that don't offer the same experience.

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