I think we have to go beyond the sole Business case analysis. Probably the bulb cost is too high and the external gateway to be used not the best way to push the service but pls note the following BIG cultural change associated with HUE:
1) for the first time lamps (in general) becomes clinet/end points of the Home Network
2) Apple starts considering fixed/IoT services and application a nes frontier for getting revenue.
I think it is great for all the people interesetd in IoT!
I agree that security is a vital part of the equation.
However, it is not a question of who needs it? Rather it is a question of who will pay for it ....and how much?
After all you don't really NEED electricity...you could use candles, etc., but you are prepared to pay for it.
Philips clearly think the Apple Store crowd will pay if only for five minutes fun of making their lights change color
Just what we need, internet enabled light bulbs for hackers to play with. I give it about a week before the real fun begins.
What about using up all of the internet addresses just so that somebody can show off how cool they are controlling the lights from their phone? Wireless will be far more hacker resistant, but even there it seems to be far more a solution running around in search of a problem. Really, who needs it?
the $59 is a very good price for what it can do !, I am in Australia and ou home automation system (Schneider (Clipsal in Australia)C-Bus) has just cost us $100K for the relays and installation in our new home !!, that is alot of bulbs ! and also they do not do as much as this system... on/off dim and timed !. This is really the start for IOT through the main stream channels !.
Bring it on I say !!
Super smart move by Philips here. Not that LED lighting that can be controlled via smartphone is new or exceptional, but teaming up with Apple is. Guaranteed way to make an impact and a profit at the same time.