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Connected Life: When Every Connection Counts

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2 CONNECTED LIFE Connected Home: A Hub of Activity Whether you call it the connected home, smart home, or home automation, homes are now a hub of activity for con- nectivity and sensor solutions. While mainstream adoption may still be years away, this market is poised for growth. It represents an important opportunity for consumer product manufacturers in sectors such as appliances, security and lighting to deliver products that are differentiated with new functionality and connectivity. However, today's market is fragmented, and standards differ. The killer application does not yet exist. Vendors are competing for mindshare with their own version of walled gardens or individual platform standards. What's clear is that there is no one approach or obvious leader today. The migration towards home automation is based on do-it- yourself product solutions versus an integrated whole home solution. All of the products in this market are competing for a bigger share of mind and control in the home. Smart connectivity is just a starting point. The possible applications range from basic diagnostics to automation and remote management. As artificial intelligence matures and proliferates, devices will leverage complicated analysis in the cloud to deliver actionable insights back to users and sys- tems within the connected home. Automation will eventually make routine tasks or chores easier, and perhaps invisible. This process will drive a cycle of increased demand for leading products, resulting in greater adoption and improved data on behavior and efficiencies. These improved results create a better experience for consumers, who then demand more products. In response, companies are beginning to offer points of collaboration. Samsung has long supported the developer community, and specifically supports developers of connect- ed home products via its SmartThings platform. Even Apple is recognizing the importance of common technologies. At its 2016 Worldwide Developers Conference, the company announced it is releasing the Home app for the iOS platform, which will act as a central control point for HomeKit-compat- ible smart home devices. In addition, Apple has opened up Siri to third-party developers, just as Amazon opened up its Alexa platform. This will allow app developers to use Siri to act as a product's voice control. In addition to technology and standards, the connected home market is also affected by the consumer adoption mindset. Early adopters are intrigued by new products and functionalities and will start purchasing, testing, and talking about them. Mainstream adoption may be years away, yet the fact remains that people are testing the waters. We can expect to see adoption curves differ depending on the product focus, geography, and pain points. However, the benefits of automation, remote management and servicing, and other customer-friendly features will encour- age appliance manufactures to differentiate in order to compete. They may be the drivers of adoption, as OEMs bring products that offer new levels of functionality to the market sooner than later. Homes: When EVERY CONNECTION COUNTS TE Connectivity is uniquely positioned to help customers succeed in the connected home market. From material components such as relays and connectors, to smart components such as sensors and antennas, TE offers all of the internal elements that make end products smart and connected. Visit te.com/connected-home to learn more.

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