Apple (AAPL) is venturing into the smart home security market with a smart doorbell equipped with facial recognition technology powered by its Face ID system, according to a Bloomberg report. This device will unlock doors automatically by scanning the user’s face.
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The doorbell is expected to integrate with the existing third-party HomeKit ecosystem, offering flexibility for AAPL users who have already invested in them. Alternatively, Apple may also collaborate with a lock manufacturer to offer a complete doorbell-lock system. Also, the device might use Apple’s in-house Proxima wireless chip, a hybrid Wi-Fi and Bluetooth technology.
This project, still in its early stages, marks Apple’s entry into a market dominated by Amazon’s (AMZN) Ring doorbell and Alphabet’s (GOOGL) Google Nest systems. It must be noted that the smart doorbell’s launch is not expected until late 2025.
Concerns Loom as AAPL Enters Growing Home Security Market
Apple’s entry into home security comes with potential risks. AAPL will need to address concerns about data breaches and safeguard its facial recognition technology. Additionally, Apple could face challenges related to liability in the event of malfunctions or breaches involving third-party HomeKit locks.
However, the potential benefits of Apple’s entry into the home security market likely outweigh these risks. According to a report by Fortune Business Insights, the market is expected to grow from $29.04 billion in 2024 to $93.14 billion by 2032, reflecting a CAGR of 15.7% during the period.
With its extensive user base and strong reputation, Apple stands to gain significantly from tapping into this growing market.
What Is the Price Target for AAPL?
Turning to Wall Street, AAPL has a Moderate Buy consensus rating based on 19 Buys, nine Holds, and two Sells assigned in the last three months. At $243.72, the average Apple price target implies a 4.23% downside potential. Shares of the company have gained about 33% year-to-date.
