Apple Killed Its Routers Once, but Subscriptions May Keep It Home This Time
It shut its router unit to focus on bigger products, but video storage fees could make its new cameras worth keeping.
Stratechery · Do You Trust Apple? | Stratechery by Ben ThompsonApple is pushing back into smart-home products with a new lineup that includes cameras, thermostats, and a video doorbell, but it already quit the home once by shutting down its Wi-Fi router business.
Bloomberg reported in 2016 that Apple had disbanded its router division to sharpen its focus on products that generate most of its revenue, moving engineers to other groups including the one for Apple TV. Apple had not refreshed its routers since 2013, and the line officially ended in 2018.
Technology commentator Ben Thompson argues that Apple lost a chance to improve Wi-Fi. IPhones tend to hold onto one router box, which spreads Wi-Fi in one spot, even when another box nearby would work better, and he says Apple could have smoothed that switch between boxes if it still made both the phone and the router.
Apple may have more reason to stay this time. Its new home cameras need a paid iCloud Plus subscription to save recorded video, with higher tiers for more cameras, giving Apple recurring revenue that routers never offered.
Questions people ask
What were Apple's routers called?
They were called AirPort, including the small AirPort Express, the larger AirPort Extreme, and the Time Capsule, which also backed up Macs. Apple introduced the first one in 1999 alongside the iBook laptop, promising simple setup and private wireless networking.
Can you still use an old Apple router today?
Yes, in many cases, though they no longer get security or feature updates from Apple. That makes them workable for basic use but a poor choice for a home you want to keep safe and reliable for years.
Who is making the new home products with Apple?
Apple says the accessories are designed with LG Electronics and Schneider Electric, set up with one tap, and managed in Apple Home with no separate app. That partner model echoes how Apple once worked with outside firms on wireless networking.