Latest WTRS Newsletter on INSTEON & Home Control Raises Viability Questions During Housing Decline

[WayneW]

WTRS Newsletter outlines doubt about INSTEON's future success, projecting two intersecting forecasts with the outcome dependent on both the Housing Market decline and decisions by SmartLabs to proceed in one of two directions. The opportunity for powerful challenge from ZigBee for home automation and sensor networks is a potential consequence.

Mountain View, CA (PRWEB) December 3, 2007 -- WTRS has reevaluated its outlook of INSTEON's prospects and is now projecting two parallel forecasts. In July of 2006 WTRS found INSTEON to be the best positioned product to succeed in wireless home automation markets. The current "As Heard on the Wire at WTRS" Newsletter would still categorize the technology as excellent, however the issue of success is now a question of market execution and company strategy.

INSTEON products are currently enjoying good and growing sales through both the retail and professional channels. There is serious interest from large OEMs in developing complimentary products to sell through mass market channels.

"During the past year the investment in people driving OEM sales at SmartLabs appears to have declined," according to George West, Senior Analyst and President at WTRS. "There are other indications that the company may be responding to the current housing market turmoil by reducing its investment in growth initiatives and is instead focusing on cash flow from operations. This is the basis for the WTRS assessment that there is considerable risk to the price/volume story for INSTEON in the absence of an external catalyst such as venture investment."

This is the context for the parallel forecasts for INSTEON. If the market were very static without competition in differing stages of development then a conservative strategy makes some sense. With the recent release of the ZigBee Pro specification and the Home Automation profile the building blocks are finally in place for ZigBee products to accelerate. Another dark horse in the form of a company with considerable experience in the controls sector that has been challenged by a number of different issues is Echelon and the Lon Works variants.

WTRS will release a new "INSTEON Emerging Technology Report" in short order, thoroughly examining the conditions and prospects.

Those interested in reading the "As Heard on the Wire at WTRS" article regarding INSTEON, may subscribe to the newsletter at no charge at www.wtrs.net.

For additional information, please contact us, or visit our website at www.wtrs.net. With an eight-year record of successful growth, we're ready to help your company make market decisions and plan for the future. WTRS (West Technology Research Solutions) is a California-based research, publishing and consulting company focused on emerging wireless technologies.

http://www.prweb.com/releases/2007/12/prweb573597.htm

 

[Digger]

I think many companies are feeling the housing decline in the bottom line. Where I work we feel it also. We are trying to roll out some new products to "wet" the appetite of our customers again and also products that are easier for professionals to install (faster in means faster out the door).

I think if SH rolls out some of the much awaited products and handles the QC they can ride the wave and not fall off. But who knows for sure.

 

[upstatemike]

One nice thing about Insteon is that it can never be "orphaned" because it is backwards compatible with X-10. Even if all of the current new lighting technologies ultimately fail I can fall back to X-10 and keep on chugging with my existing switches and controllers.

 

[hockeypuck]

One nice thing about Insteon is that it can never be "orphaned" because it is backwards compatible with X-10. Even if all of the current new lighting technologies ultimately fail I can fall back to X-10 and keep on chugging with my existing switches and controllers.

They will never go away. A big player like leviton or cuttler hammer would scoff them up in an instant.

 

[applianceman]

One nice thing about Insteon is that it can never be "orphaned" because it is backwards compatible with X-10. Even if all of the current new lighting technologies ultimately fail I can fall back to X-10 and keep on chugging with my existing switches and controllers.

They will never go away. A big player like leviton or cuttler hammer would scoff them up in an instant.

An awful lot of the insteon development and business team at SmartHome have left lately. I tried calling a number people from SH that I met at shows and they are no longer with the company. Alot of smoke...

 

[George West]

One nice thing about Insteon is that it can never be "orphaned" because it is backwards compatible with X-10. Even if all of the current new lighting technologies ultimately fail I can fall back to X-10 and keep on chugging with my existing switches and controllers.

I don't expect INSTEON to "go away" I still use it in my home and I continue to add devices as it makes sense, mainly as I update the wiring and lighting.

INSTEON was originally designed to meet the needs of the SmartHome.com customer base and SH can continue to sell the product into that base. Doing this takes SH back into the realm of PCS - selling a pretty good product for their customer base into a limited market. Interestingly enough, right at the point in time where PCS as a company has decided to get serious about promoting UPB. I don't know if it came across or not but I was pretty impressed with the energy and enthusiasm that Scott K displayed when I talked with him at EHX.

You only need to worry about the conclusions in the report if you are either a competitor or an OEM/ODM customer of SH. There aren't that many companies in the Home Control industry that have the capability to turn the industry on its ear. SH seems to have decided to make it one fewer.

FWIW and YMMV

Time to get serious about Christmas shopping and to forget about automating the Christmas lighting.

George West
www.wtrs.net

 

[AutomatedOutlet]

An awful lot of the insteon development and business team at SmartHome have left lately. I tried calling a number people from SH that I met at shows and they are no longer with the company. Alot of smoke...

Yes, a couple of Tuesdays ago, a lot of people found out that they no longer work there and some quit as well.

 

[Digger]

An awful lot of the insteon development and business team at SmartHome have left lately. I tried calling a number people from SH that I met at shows and they are no longer with the company. Alot of smoke...

Yes, a couple of Tuesdays ago, a lot of people found out that they no longer work there and some quit as well.

Thats a shame that they cleaned house. I wonder if it was cutbacks or scapegoats? Maybe something else entirely.