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A NEW ERA FOR SMART LIGHTING: PHILIPS HUE EXECS AVOID BONUSES AFTER TECH SETBACK
Philips Hue extends warranty period in response to customer concerns.
By Emma Thompson [https://techinsights.com/author/emmathompson/] – Oct 5, 2024
Philips Hue, a leader in smart lighting solutions, faced backlash earlier this year following a disastrous app update that disrupted features central to its user experience. CEO [https://techinsights.com/gadgets/2024/09/philips-hue-ceo-apologizes-for-app-mismanagement/] Emma Clarke acknowledged the missteps in an interview with Tech Times [https://www.techtimes.com/] and confirmed that company executives, including herself, would forgo bonuses as a consequence.
The update, launched back in May, resulted in widespread frustration among users who found essential functions like scheduling lights and integrating with smart home systems compromised. Customers reported issues with bulbs losing connectivity, which raised eyebrows about the company’s quality assurance processes.
In a statement to stakeholders on Tuesday, Philips Hue reassured users that “over 85 percent of the app’s original capabilities have been restored” with full functionality expected to return shortly. The company has committed to a two-week update cycle to rectify the previous mishap.
Clarke admitted the app’s release was hasty, driven by the rollout of new Hue products, which inadvertently led to a host of unresolved issues. “This is undeniably our failure, and I take full responsibility for that,” she stated.
NO BONUSES FOR PHILIPS EXECUTIVES
Reports indicate that Clarke and other executives avoided bonuses for the fiscal year ending September 30 due to the significant fallout from the app’s shortcomings. Previously, Clarke had received bonuses in the range of $50,000 for her management role.
The app disruption has not only tarnished Philips Hue’s reputation with loyal users but is estimated to cost the company upwards of $20 million in the short run to restore user confidence and address emerging technical problems. Philips also postponed the launch of several new lighting products, forcing a revision of its fiscal outlook for 2024. Shares have dropped more than 25 percent since prior to the app’s release, according to market analysts.
Moreover, the company faced employee layoffs amidst the debacle but Clarke indicated there are no plans for further cuts at this time.
“WE MISSTEPPED”
In addition to implementing regular biweekly updates, Philips Hue has been working diligently to regain customer trust by outlining new policies for product development and testing.
On Wednesday, Philips announced an extension of warranties by an additional year for all lighting products currently covered, a gesture aimed at retaining customer loyalty.
Clarke elaborated on the company’s plans to prevent future failures, stating, “Our beta testing will now include more diverse settings and user demographics for a longer duration. This will help us identify and resolve issues quickly before products hit the market.”
Philips also announced enhancements in testing methods, with gradual releases planned that allow for user feedback before full rollouts. “For minor feature updates, users will have the option to opt into experimental features, helping us test functionalities while still gathering insights from our customers,” Clarke added.
The app remained active for nearly three months before Clarke publicly acknowledged the company’s errors. Since then, Philips has been adamant in taking ownership of their faults, with users voicing their frustration in extensive discussion threads on Philips’ community boards.
Numerous customers have expressed disappointment. One long-time user lamented, “Philips used to be my go-to for smart lighting solutions. Now, I find their products unreliable, and I’m reconsidering my loyalty.”
Emma Thompson is Tech Insights’ Senior Editor, focusing on news and reviews in consumer technology, including smart home devices and innovations in connectivity. She is located in Austin.
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