NetworkNewsWire Editorial Coverage
NEW YORK, May 17, 2022 /PRNewswire/ -- It's generally accepted that the phrase "Internet of Things" was coined in 1999 during a presentation for Procter & Gamble. Actually, the concept was already in use more than 15 years earlier when programmers at Carnegie Mellon University connected a Coke machine to the internet so they could see if there were any cold Cokes available before walking to the machine to buy one. After four decades, the Internet of Things (IoT) has become ubiquitous, making its way into essentially every facet of day-to-day life and consumer demand for IoT products has become insatiable. That demand has proved a boon for innovative companies such as SPYR Inc. (OTCQB: SPYR) (Profile) as well as famous FAANG companies: Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (NASDAQ: AMZN), Google (NASDAQ: GOOG) and Meta Platforms Inc. (formerly known as Facebook) (NASDAQ: FB).
- Led by the emergence of new communication technologies, the IoT market is forecast to rise from $300 billion in 2021 to $650 billion in 2026.
- SPYR's Applied MagiX is expanding footprint and brand recognition by offering products that work within the massive Apple ecosystem.
- Applied MagiX is eying expansion into lucrative markets, including smart lighting and potential as a new mobile virtual network operator.
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IoT Hit Its Stride with 5G
The idea of "things" communicating is no longer new, but it has always been held back by limitations in communication technology, a factor that is getting a serious upgrade right now. To lend some color, consider 5G, the fifth-generation of mobile networks setting the new wireless standard with tremendous peak data speeds, ultralow latency, increased reliability and availability, and massive network capacity, among other enhancements. It's widely accepted that 5G is a game changer in the IoT space, with faster, more stable connectivity paving the way to the next wave of advancements in smart cities, smart homes, smart healthcare, smart factories, smart energy grids, autonomous vehicles and more.
The effect? An IoT market that is going to experience an explosion in applications on its way from a $300 billion market in 2021 to $650 billion in 2026. One day, believe it or not, today's tech will look as advanced as the telegraph did in 1830. All types of markets are going to benefit, with many smaller markets growing exponentially faster, such as a burgeoning eSIM market surging 31.4% annually on its way to $5.7 billion by 2030.
SPYR Inc. (OTCQB: SPYR) is a technology company that, through its wholly owned subsidiary, Applied MagiX Inc., is capturing share in the booming IoT market. Applied MagiX develops and resells in demand products that are compatible with the Apple(R) ecosystem, predominately in the smart-home and connected-car markets. In an ever-digitized world, these markets are experiencing robust expansion and are forecast to reach $138.9 billion by 2026 (MarketsAndMarkets) and $191.83 billion in 2028 (Fortune Business Insights), respectively.
With an initial focus on Apple products, Applied MagiX has targeted what is arguably the world's most affluent and brand-loyal demographic of consumers in the world. User commitment to not stray from the ecosystem has been well earned by Apple with the reliability and interoperability of its products, which reduces churn and saves on user-acquisition costs. Well-received products being offered today include MagixDrive (an adapter enabling wireless CarPlay), MagixCharge Dual USB-C charger, Onvis C3 HomeKit Secure Video Camera, and Onvis C1 Security Alarm and Environment Sensor.
Leveraging the Apple Ecosystem
The strategy to focus exclusively on the Apple ecosystem is an incredibly savvy move by an upstart; even more so than it may seem at first blush. For starters, Apple has a spectacular user base of 600 million people worldwide and controls the lion's share (56% in Q4 2021) of the total mobile phone market. When it is time to upgrade, these users aren't going anywhere, as evidenced by a stunning 90% selecting another iPhone. Second, it means that Applied MagiX can conserve R&D expenses by focusing on a singular operating system rather than building out compatibility for all the different type of products on the market today.
Furthermore, Apple users on average have more disposable income and aren't afraid to spend those funds on technology. Research shows that Apple users typically spend twice as much each year on their tech products (~$1,200 per year vs. ~$600). When it comes to smart-home products, Apple is the preferred brand for millennials, a cohort that is willing to spend more than $3,000 on products that automate their homes. If a brand wants to keep up with trends, jumping on the Apple bandwagon is a smart way to go.
Working Their "MagiX"
As Applied MagiX amps revenues and works on the latest iterations of its current products, the company is simultaneously exploring expansion into new verticals to tap emerging markets and add more revenue streams. First, Applied MagiX is enticing more people to use its product and develop loyalty to the MagiX brand. As example, late last month the company launched a summer sale offering tech-enthusiastic customers a chance to try Applied Magix products for the first time or stock up on products they don't have at a discounted price. "Applied Magix really does work their 'magix' with these deals, both clearing out inventory and making customers happy," said Tim Matula, CEO of SPYR Technologies, in a statement. Increased sales equal non-dilutive capital for R&D and marketing.
Upgrading and expanding is a page right out of the Apple playbook. SPYR and Applied MagiX senior leadership is not shy about saying that they are aggressively seeking acquisition targets. While sticking with the theme of smart technology, the company is actively investigating opportunities that will bring new intellectual property under its umbrella to expand the product portfolio, perhaps with artificial intelligence capacities, including complementary products and those in different verticals.
Lighting Up the Future
"In the tech business, it is always important to stay at the forefront of the industry, and preferably several steps ahead. This is what Harry [Applied Magix CEO Dr. Harald Zink] and Applied Magix are doing," said Matula, adding that he is often "fascinated" by the tech Zink finds. The company is obviously careful, for competitive reasons, to not go into great detail about future products or possible acquisitions, but it does not object to dropping hints to provide insight as to management's objectives to build value.
Specifically, Applied MagiX is evaluating adding smart LED-lighting products to its lineup of home products compatible with Apple's HomeKit. Zink is reportedly working through the decision-making process, including discussions with manufacturers on viability to add LED light bulbs and atmosphere-enhancing LED light strips that are complementary to the various HomeKit-compatible sensors it already offers. There are a myriad of potential applications, and Applied MatriX appears to be angling to get into a smart-lighting market projected to reach $27.7 billion by 2026 from $10.9 billion in 2021.
Getting in the Mobile Operator Game
New technologies, such as eSIM, AI, machine learning and edge computing are fueling growth in the mobile virtual network operator (MVNO) market, which is expected to reach $91.6 billion by 2026. MVNOs have exploded on the mobile phone scene in recent years, swiping market share from bigger peers by offering less expensive services to consumers. For major telcos, it's a trade-off where they collect revenue by allowing MVNOs access to their infrastructure.
Applied MatriX is crunching numbers with consideration to entering the MVNO market with special mobile phone plans exclusively for iPhone users. SPYR, who has team members with experience in the industry, is working alongside its subsidiary to perform due diligence into the opportunity and what customers want. In other words, management is analyzing the mobile phone service market to see if there is an opportunity to provide something specific to iPhone users that could potentially lure users to MagiX as a network provider. That could be a company maker on its own.
Forty years ago, the Internet of Things was little more than a connection to a vending machine by some people too lazy — or too smart — to walk over to see if a Coke was available. An amazing journey, considering where IoT is today. By the early 2000s, Walmart and the U.S. Department of Defense were using RFID to tag and track items, early indications of mass adoption of IoT. By the 2010s, smart doorbells were becoming a thing, allowing homeowners to remotely see who is at their doora. Now smart consumers are embracing the ease of use and functionality of IoT in the smart-cars and smart-home space. Little doubt the market is headed higher with new advancements coming mainstream. Odds are that tech giants and upstarts alike will have a helping hand in making it happen.
Apple Inc. (NASDAQ: AAPL), the world's biggest company by valuation, made a slow and deliberate entrance into the IoT market. Apple's value and utility to IoT often goes understated. In reality, it is one of the world's most important IoT companies because almost every consumer-facing IoT technology works through a smart app available through Apple's App Store. From a product perspective, the company has a growing list of IoT devices sporting its HomeKit moniker available through its online store.
Amazon.com Inc. (NASDAQ: AMZN) is a key player in the IoT space as well. Best known for its massive online store and Prime services, the company has robust offerings that it provides for free underneath its Amazon Web Services unit which support and encourage development of IoT solutions. The end game is beneficial to Amazon by generating additional business related to collecting, storing and analyzing all the data from connected devices.
Google (NASDAQ: GOOG) is active in the IoT market, running the gamut of hardware and software. The company bought Nest for $3.2 billion in 2014 to get into the smart-home consumer goods market and also acquired Fitbit for $2.1 billion in 2019 adding another connected brand to its portfolio. Furthermore, the search giant offers a comprehensive package of goods on the software side for customers to build and manage smart devices with Google technology.
Meta Platforms Inc. (NASDAQ: FB), the company made famous for its Facebook social media platform, recently changed its name to emphasize its focus on the Metaverse. While it rebrands all its products to Meta, the company could take a much bigger role in IoT through its wildly popular Quest virtual reality headsets. The Metaverse for which the company sees as the way of the future is predicated upon the morphing of the physical world with a digital representation, which, almost certainly, will include IoT technology to make adjustments in the actual world from within the digital one.
Forty years ago, no one would have predicted the tsunami of tech devices or their intercommunicability that exists today. The IoT revolution has already made life simpler and easier. The future for IoT is bright and is here to stay.
For more information about SPYR Inc. (OTCQB: SPYR), please visit SPYR.
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