Published on : Feb 28, 2018
Amazon has made it clear that it is penetrating deeply into the home security market with the acquisition of internet-connected cameras and doorbells maker Ring on Tuesday. The acquired company is popular for one of its doorbells having a security camera inside it. As per an anonymous source, the two companies have settled for a deal of close to a US$1.1 bn. Owing to the success of Echo, Amazon has been mainly focusing on home automation. Echo Spot has already been made to work with Ring doorbells to allow users to check out footage from cameras installed on the screen of the Echo Spot.
ADT’s Stock Fell Sharply after Deal became Public on Tuesday
Latch CEO, Luke Schoenfelder has said in a statement that Amazon could compete against big guns in the home security market, including Alarm.com, Comcast, and ADT with a more serious effort. He speculated that the company could include home security in its Prime membership service. The effect of the deal between Amazon and Ring could be seen on the stocks of home security companies. This could be evident with ADT ending Tuesday down 4.6 per cent.
Both Amazon and Ring have not spoken much about their future plans. However, we do know that Amazon has been taking a few baby steps into home security. In December, it acquired internet security doorbells and cameras maker, Blink. It has also started to sell Amazon Cloud Cam, indoor security camera with its own design, since last year. Then there is this service called Amazon Key which allows delivery guys to drop orders inside people’s homes. It is equipped with internet-connected door locks and cameras.