Samsung is launching an AI Powered Line Up of Bespoke Ecosystem - Would AI in home appliances take decades to spread like No Frost Refrigerato

Samsung is launching an AI Powered Line Up of Bespoke Ecosystem - Would AI in home appliances take decades to spread like No Frost Refrigerato

When I realized few years back that the first No Frost refrigerator started appearing in the USA around late 1950s and early 1960s so around 60-70 years back, yet it has taken decades for No frost refrigerators to become the market standard by the late 1980s & early 1990s.

Home appliances are not like mobile phones because

  1. You usually change your phone every 1-3 years, but you change your refrigerator every 10-25 years
  2. The sexiness of phones and the attachment to social network and community and FOMO is really fed by phones and apps working on them. "When was the last time you heard someone saying, I want to get get the latest refrigerator that has all these new technology vs a phone"
  3. Home appliances are high ticket items that can be worth the price of 1-3 phones, so purchase decision depending on apliance reliability is more critical than its features.
  4. High ticket, high innovation appliances don't sell in mass scale as phones due to price and a fridge serves 3-5 people while a phone serves one person.
  5. People keep seeing new tech home appliances with chips and high technology failing more due to their complexity levels.

The point is, it will take several years for manufacturers to adapt and find the right USP and right technology mix that really elevates the consumer experience.

And it will take even a few decades for consumers to start believing in innovative technology and start adapting it.

Needless to say, that the appliances failure rate with high tech must come down if the manufacturers ever want mass scale adoption.


BUT.............

What LG did 3 weeks ago launching subscription service for appliances naming it "Appliances as a Service", would actually put a rocket booster to consumers adapting new appliances because

  1. The hassle of service is now lifted to be the manufacturer responsibility, "Hey, I am just renting it"
  2. Consumers can easily upgrade to new appliances with new tech which increases the market sample size that feed the companies data to enhance and have better adaptation "You get 1 month's free subscription for giving 2 hours of your time for feedback"

It is still too early to judge, but there are massive trends behind this.

Jakir Shaikh

Transformative After-Sales Leader | Driving CX, Cost Savings, Sustainability

7 个月

This is an intriguing read, Seif Abdelghany. The integration of AI in home appliances is indeed a game-changer. However, as you rightly pointed out, consumer trust and reliability are essential. It will be interesting to see how manufacturers navigate this delicate balance.

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