Cree Collaborates With Smart Things, Takes Home Automation To A New Level

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Cree (NASDAQ:CREE), a leader in gallium nitride (GaN) RF devices, has introduced the Connected Cree LED Bulb’s compatibility with SmartThings, a market leader in home automation which is part of the Samsung Global Innovation Center. The news comes just four months after the Connected Cree LED Bulb’s inaugural launch and reinforces its position as the most compatible connected LED bulb on the market. The Connected Cree LED Bulb is the first smart LED bulb to deliver the combination of the lighting experience customers expect from Cree with industry-leading simplicity, multi-platform compatibility and affordability. (Read Press Release)

The Connected Cree LED Bulb will connect to the WeMo ecosystem through the WeMo Link, a ZigBee-to-Wi-Fi bridge that connects any WeMo-enabled LED bulb to the home wireless network and the WeMo app. The bulb will be controllable from anywhere using a smart device and the WeMo app. Through the app, the Connected Cree Bulb will also work with other WeMo products, including the WeMo Light Switch, WeMo Insight Switch, WeMo Maker, WeMo Smart LED bulbs, and NetCam HD+. Integrating fully with the WeMo ecosystem will allow Cree customers to easily create a fully integrated smart home customized to their needs and schedules. Using the WeMo app and Cree bulbs, users can create a variety of rules and actions that make home life easier and more comfortable.

Cree is confident that it is well-positioned to continue to do well in LED lighting. Though the company has made significant progress growing both the volume and product base of its lighting business over the last several years, it believes that there is still a lot of untapped potential in terms of both revenue and profitability. Cree claims that it continues to gain share in the commercial lighting market as the demand rebounded in late March this year, while the Cree LED bulb shapes the consumer lighting category and creates awareness for the Cree brand. The company has a strong product pipeline and is building good sales momentum for its products.

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Though the LED landscape remains highly competitive, Cree believes that its high power LED technology positions the company for long-term success in high performance LED lighting applications. The collaboration with Lextar can help Cree expand its presence in the mid-power segment.

By quickly tweaking various components, Cree could achieve breakthroughs on the bulbs’ cost and performance that its competitors could not. Also, the company could be sure it would not be distracted by other marketing pursuits. Cree has staked its entire research and development efforts on the ascent of the LED. In the coming decade, as the consumer market – along with the much larger industrial and commercial lighting markets – transitions from fluorescent and incandescent lights to LEDs, Cree sees vast potential for growth.

Our price estimate of $35 for Cree is at a premium of about 15% to the current market price.

See Our Complete Analysis for Cree Here

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