Arlo Technologies Inc. (ARLO), the manufacturer of smart home products, has recently collaborated with Apple Inc (AAPL) after which Arlo Technologies products appeared In the Apple Store. The news contributed to a dramatic rise in ARLO stock as they gained more than 16 percent over the past week.
Users found last week that there are Arlo Ultra 4K wireless surveillance cameras among the Apple Store items that are now compatible with the HomeKit platform. This is in line with the strategy of Apple to extend its smart home industry experience, where it still lags behind its rivals. Cooperation with Apple is also a good opportunity for Arlo Technologies to extend its distribution geography and accelerate the monetization of its services.
Around 1 million devices were shipped by Arlo Technologies in the third quarter, but the company’s issue remains with a limited number of paying customers. So just 7 percent, or 356,000, of the 4.8 million registered Arlo Technologies accounts are charged.
Apple is not the first retail partner of ARLO, but collaboration with the popular manufacturer of smartphones will extend the connected devices provider company’s range of smart home innovations. Furthermore, it is possible to improve the e-commerce market, which received a boost during the COVID-19 pandemic, thanks to Apple.
The demand for IP cameras and doorbells with a video camera will hit $4.35 billion by 2024, up from $2.48 billion in 2019, according to research firm OMDIA. This forecast does not include systems installed by businesses, i.e. the forecast only takes into account products purchased and installed by customers individually and Arlo Technologies offer such products. The company thus operates in a fast-growing market and in the long term, partnership with well-known brands strengthens the role of the company.
Arlo Technologies Inc. (ARLO) stock was up 1.54% to $7.91 at ring of the bell on Thursday.