Collapsing “connected toy” company did nothing while hackers stole millions of voice recordings of kids and parents / Boing Boing

http://boingboing.net/2017/02/28/internet-of-shitty-toys.html

From article:

As I’ve argued before: there is no IoT business model. Hardware starts at a 2% margin and falls from there. IoT companies get capital by promising to monopolize an “ecosystem” — controlling app stores, service, parts, and consumables, and by collecting as much data as possible in case they might get an exit by selling the company to someone who wants access to it. These firms have no incentive to invest in any but the most cursory security measures (because by the time a breach occurs, they will either be a division of a larger company or out of business), and anything they spend it money they can’t use to keep the doors open while they look for an exit or a profit.