We all know that to reduce the cost of a product, a viable approach is to achieve standardization. When all the components of a product are standardized, it only needs to purchase and assemble them from the component market to become a finished product. This method has proven effective in both the PC market and the smartphone market.

Let's take a moment to recall the cost of purchasing a home PC in the past—it was truly heartwarming. However, as the PC industry has evolved, many PC components have become standardized, turning the assembly of a PC into a mere procurement of parts. With an increasing number of manufacturers joining in, the prices of PC components have dropped continuously, and with fierce market competition, the prices have become incredibly affordable. The same is true for the mobile phone market.

Like other industries, the smart home industry chain can be divided into three major segments: upstream components, midstream intermediates, and downstream terminal products. Downstream terminal products include home appliances, lighting, security, and small smart single products, with the market developing rapidly, with the smart home industry as a representative. Upstream components include chips, circuit boards, and plastics, while midstream intermediates include modules and smart controllers. These two segments have fewer producing enterprises, are underdeveloped, and there's no mention of standardization.

Due to underdeveloped upstream and midstream sectors, smart home companies are struggling to reduce costs, leading to high product prices and performance that often fails to meet consumer expectations. To further develop the smart home industry, addressing the shortcomings in these upstream and midstream areas is crucial.

More and more manufacturers are jumping on board to develop and produce according to their own standards, but since the standards are still in their infancy, many interfaces are not yet fully developed, directly resulting in a plethora of functional limitations.

Once the industry standard for smart home technology is unified, issues related to connectivity and interaction among smart home devices will become minimal. This will facilitate the formation of an ecosystem within the smart home industry, further propelling its growth.