Amazon Has Reportedly Gained Edge Over Apple in Deals With Smart Home Builders

Amazon appears to have gained an edge over Apple in deals with smart home builders, according to The Information.

homekit home
The paywalled report claims that an increasing number of home builders have agreed to partnerships with Amazon to build homes with preinstalled Alexa-enabled accessories, rather than HomeKit-based products from Apple.

Last year, for example, Amazon reportedly struck a large-scale deal with Lennar, one of the biggest home builders in the United States. Lennar first had a partnership with Apple in 2016, but the company is "prioritizing Amazon now."

As part of its deal, Lennar gets access to Amazon's growing army of so-called Amazon experts, the company's in-home service team, to go around to every new homeowner and make sure their smart home is hooked up. Every new Lennar home comes with Echo Dot speakers and Echo Show displays to connect with Alexa, as well as a suite of connected doorbells, locks, light switches and thermostat.

A few other builders, such as Arizona-based Meritage Homes and Shea Homes, also said they considered Apple but opted for Amazon.

"Apple is closed source about what will talk to their system, so we shied away from it," said CR Herro, a vice president with Arizona-based Meritage Homes. "I don't want to restrict what I think the future could be because I have no idea what it will be."

The report claims that Apple requiring accessory makers to install an authentication chip for HomeKit compatibility has "significantly limited the number of new devices getting to market," but that is no longer the case, as iOS 11.3 introduced software-based authentication for accessories to interface with HomeKit.

Meanwhile, some builders believe there is a downside in allowing Amazon to embed a network of Alexa-powered devices that can collect data into homes, ranging from privacy concerns to competitive reasons.

Startup home builder Kasita, for instance, thinks these traditional players are giving up a huge amount of business by linking up with Amazon. Kasita uses Alexa devices for performing voice control in its "micro homes," but tries to maintain its relationship with the consumer by providing its own app and wants to offer its own services to consumers in the future.

"Amazon owns you when you buy anything online," said Jeff Wilson, founder and chairman of Kasita. "Do you really want them owning home experiences?"

While new homes are estimated to account for only about 10 percent of residential home sales in the United States, Apple believes the best way to introduce homeowners to HomeKit is from the get-go.

"We want to bring home automation to the mainstream," said Greg Joswiak, a marketing executive at Apple, in an interview with Bloomberg. "The best place to start is at the beginning, when a house is just being created."

Popular Stories

iphone 16 pro colors 1

Is Now the Time to Upgrade Apple Devices Before Tariffs Lead to Price Increases?

Friday April 4, 2025 3:41 pm PDT by
If you have an older Apple device that you've been considering upgrading, you're probably wondering how the newly announced tariffs might impact prices going forward, and whether it's worth buying now before there's a price hike. Given analyst and economist responses to the tariffs, market panic, and Trump's stance on the current financial chaos, the answer is that making a purchase...
2024 iPhone Boxes Feature

iPhones Could Cost Up to $2,300 in the U.S. Due to Tariffs, Analyst Says

Friday April 4, 2025 9:30 am PDT by
U.S. President Donald Trump on Wednesday announced that steep tariffs will be applied to imports from many countries, starting April 9. The tariffs could have a significant impact on Apple, as the company assembles the majority of iPhones in China, and products imported to the U.S. from China will be subject to a 54% tariff. iPhone prices could increase by up to 43% in the U.S. due to the...
Alleged iOS 19 Icons Front Page Tech

iOS 19 Leak Reveals Alleged New Design With Rounder App Icons, Floating Tab Bar, and More

Monday April 7, 2025 3:13 pm PDT by
YouTube channel Front Page Tech is back today with another video that provides a closer look at iOS 19's alleged design changes. The video contains re-created renders of iOS 19, which are allegedly based on real footage of the software update, provided by sources within Apple. Overall, iOS 19 is expected to have a more glass-like, visionOS-inspired design, with added translucency for user...
iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

iPhone 17 Pro's New Rear Camera Bar 'Same Color As Rest of Device'

Monday April 7, 2025 2:09 am PDT by
Apple's upcoming iPhone 17 Pro models will feature a redesigned rear camera panel that spans the width of the device, but it will be the same color as the iPhone itself, rather than being part of a two-tone design. That's according to Bloomberg's Mark Gurman. Writing in his latest Power On newsletter, the reporter says the iPhone 17 Pro won't have a two-toned back, as some renders have...
iOS 19 Mock WWDC25 Feature

iOS 19 Expected to Run on These iPhones

Monday March 31, 2025 5:28 pm PDT by
iOS 19 will not be available on the iPhone XR, iPhone XS, or the iPhone XS Max, according a private account on social media site X that has accurately provided information on device compatibility in the past. The iPhone XR, iPhone XS, and iPhone XS Max all have an A12 Bionic chip, so it looks like iOS 19 will discontinue support for that chip. All other iPhones that run iOS 18 are expected...
iphone x front back

Apple Planning 'Bold' New 20th Anniversary Design for 2027 iPhone Pro

Monday April 7, 2025 2:46 am PDT by
Apple is preparing a "major shake-up" for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. iPhone X released in 2017 for 10th anniversary Writing in his latest Power On newsletter, Gurman says that Apple plans to launch a foldable iPhone alongside a "bold" new iPhone Pro model that makes more extensive use of glass. Could this mean Apple plans to realize former...
top stories 2025 04 05

Top Stories: iOS 18.4 Released, New AirPods Max Features, and More

Saturday April 5, 2025 6:00 am PDT by
We're just two months away from WWDC where we'll get our first glimpses of iOS 19 and related updates, but this week saw the public release of iOS 18.4 with a number of changes and improvements including some audio improvements for the USB-C AirPods Max. This week also saw the first beta of iOS 18.5, a new rumor about iOS 19 compatibility, and Apple's work on haptic buttons that have yet to...
iOS 18

12 New Things Your iPhone Can Do in iOS 18.4

Tuesday April 1, 2025 4:06 am PDT by
Apple has released iOS 18.4, bringing further refinements to Apple Intelligence features, a neat new capability to iPhone 15 Pro devices, new emoji, and more. While not quite as packed with new features as Apple's preceding iOS 18 point releases, iOS 18.4 still introduces enhancements that aim to make your iPhone smarter and more intuitive. Below, we've listed 12 new things your ‌iPhone‌ ...

Top Rated Comments

smulji Avatar
91 months ago
I think Apple is a much more reliable home automation platform, as soon as Apple makes Siri better Amazon will be in big trouble.
Questions is when? Apple has had 7 years to make Siri better.
Score: 26 Votes (Like | Disagree)
ambientdaw Avatar
91 months ago
I laugh at this whole market. The minor conveniences people gain for the massive things they surrender; privacy and security. The mind boggles at how anyone would go for this tech.
Score: 22 Votes (Like | Disagree)
Spock Avatar
91 months ago
I only buy Alexa compatible home automation hardware because the Echo can be had for $29 and works great. I have three in my house and they control lights in those rooms, can tell me the weather and play things off my phone via Bluetooth. HomeKit and HomePod are just to expensive for me right now. I’m not saying HomePod is a bad product but Apple is far to late to the game at this point.
Score: 18 Votes (Like | Disagree)
Cmbqwerty79 Avatar
91 months ago
When smart homes start getting hacked homeowners will want to know which company provides a more secure system. Then we will see who wins out in the end.
Score: 18 Votes (Like | Disagree)
HJM.NL Avatar
91 months ago
A walled garden is only nice if the plants in that garden are fresh and healthy. If you have little choice and pay double the price for the same product and functionality, you feel trapped in that garden.
Score: 11 Votes (Like | Disagree)
PastaPrimav Avatar
91 months ago
This is pretty apparent, and its a shame. Way more Alexa adoption than HomeKit from what I've seen.
Score: 9 Votes (Like | Disagree)