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Hundreds of LockState smart locks around the world stopped working after the company mistakenly issued the wrong over-the-air (OTA) software update for the devices, according to Ars Technica.
In the aftermath of the incident, angry users reached out to the company to express their frustrations and took to social media to share those concerns with a larger audience.
This incident casts doubt on the benefits of OTA updates for smart home device makers for the first time.
- We've assumed for some time that OTA updates can save device makers millions in expenses. OTA updates often remove the need for smart home device makers to issue recalls in the event of a malfunction. This can be extremely expensive if replacements are needed. For instance, a 2011 recall cost Honeywell $14 million just to replace 77,000 thermostats alone, a cost that may have been unnecessary if the firm issued an OTA update to fix the error. As a result, Honeywell and the vast majority of other smart home device makers, including Nest, Canary, GE, and Samsung, all now issue OTA updates to fix glitches and avoid costly recalls.
- But this incident shows the potential downsides of OTA updates might outweigh the potential for cost savings. This incident didn't just hurt LockState's reputation with its customers, but could have turned off potential buyers of its products as well. There could also be monetary costs — it's possible that firms could be held liable for damage, thefts, or other incidents that occur in the wake of a malfunctioning update. Since the smart home market will start to grow more rapidly in the coming years — BI Intelligence forecasts that 73 million smart home devices will be installed in US homes in 2023 — companies may cool on OTA updates as they weigh the risk to their reputations against the potential cost savings.
Nicholas Shields, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on the US smart home market that:
- Analyzes current consumer demand for smart home devices based off results from BI Intelligence's proprietary survey.
- Forecasts future growth in the number of smart home devices installed in American homes.
- Analyzes the factors influencing the proliferation of voice control devices in the homes.
- Identifies and analyzes the market strategies of various companies that have integrated voice control into their smart home ecosystems.
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