Rumor: Apple Inc. (AAPL.US) Partners with LG to Enter Smart Home Market: Doorbells, Thermostats, Cameras, and Other Accessories to Carry the LG Brand

According to people familiar with the matter, Apple Inc. (AAPL.US) is about to expand its smart home device lineup, including doorbells, thermostats and other accessories, and these products will be developed by Apple Inc. and LG Electronics through an unusual partnership. The related products will be part of a device ecosystem that can work with Apple Inc.'s new smart home hub, while also being compatible with an upgraded HomePod mini and a new TV set-top box. Apple Inc.'s own new devices are scheduled to be released on October 13. The people said the products Apple Inc. is developing with South Korea's LG also include smart deadbolts, indoor security cameras, outdoor security cameras and floodlight cameras. The people asked not to be identified because the matter has not yet been made public. Although both sides are involved in development, the products will use the LG brand, with LG responsible for manufacturing and product support. Apple Inc. has previously used a similar strategy, quietly working with companies such as Foxconn Technology Group's Belkin and Logitech International S.A. to develop products sold under other brands. This kind of arrangement with so-called "second-party suppliers" allows Apple Inc. to quickly expand its ecosystem without bearing the full cost and complexity of producing and supporting a full range of accessories. At the same time, Apple Inc. can still influence product design, customize features and oversee engineering, while the overall effort can remain largely low-profile. However, development of the LG accessories is behind Apple Inc.'s own devices and is expected to take at least several more months to reach consumers. Spokespeople for both Apple Inc. and LG declined to comment. In recent weeks, LG has sought regulatory approval for these devices, including applications to the U.S. Federal Communications Commission and product certification company UL Solutions. Database filings with both agencies disclosed product names, specifications, features and drawings, including the LG Wired Video Doorbell, LG Floodlight Camera, LG Plug-In Outdoor Camera, LG Plug-In Indoor Camera, LG Smart Deadbolt, LG Smart Thermostat and LG Temperature Sensor. LG has requested that related photos and more precise details remain confidential until early next year. The filings did not mention Apple Inc.'s involvement. Most of the devices support Wi-Fi and Bluetooth networking, as well as Thread and Mattertwo major smart home protocols that Apple Inc. and its competitors have embraced in recent years. The door lock also supports ultra-wideband (UWB) functionality, allowing it to unlock automatically when a user approaches the door. For Apple Inc., the new home ecosystem and devices will mark an official restart of HomeKit. HomeKit was launched in 2014, but it has failed to gain much market traction compared with products from Amazon.com, Inc. and Alphabet's Alphabet Inc. Class C. Apple Inc. hopes to inject new vitality into this category with smart home devices and the Siri artificial intelligence assistant. According to Bloomberg News, Apple Inc. also plans to launch more of its own products in the future, including a privacy-focused home monitoring device, a version of its smart home hub that connects a screen to a robotic arm, and a home security monitoring service. For LG, the company known for TVs and washing machines will also use this to expand its smart home business. The product line represents its first indoor camera in nearly a decade, as well as its first outdoor camera, thermostat, floodlight camera and doorbell in recent times. The company will also sell its first smart lock for markets outside South Korea. This will put Apple Inc. and LG into more direct competition with Amazon.com, Inc.'s Ring and Alphabet Inc. Class C's Nest, which are already well established in the smart home space. Both already offer similar devices that let users monitor areas throughout and around their homes. Apple Inc. and LG have a long history of cooperation. The two sides were once rivals in the smartphone market, and today Apple Inc. and some companies under the LG group have become key partners. LG Display supplies displays for many Apple Inc. products, and Apple Inc. has also worked with LG Electronics to integrate its services into LG TVs. Nearly a decade ago, when Apple Inc. temporarily exited the external computer monitor market, it also developed monitors with LG for use with Apple Inc. laptops.