The cost was $700, plus $150 for the install. The designers thought that what held back consumers from such locks was neither security nor cost, but was how cool it looked. So they hired a bunch of Apple employees to make it look cool. Here is a link with a more in-depth description:
https://techcrunch.com/2017/08/24/otto-is-betting-people-will-pay-700-for-a-premium-smart-lock/So many screwed up things about the story:
1. Zero-day hacks. These things tend to be blown wide open by the hacker community months after coming out, and when the vulnerability is found, they are all susceptible until the factory figures out a countermeasure and gets it out into the market. On the other hand, there simply is no zero-day hack against quality mechanical locks. Sure a person can practice and study and learn how to pick mechanical locks, and then spend time being exposed while they try to pick one, one that might put up a fight for several minutes or longer. But a smart lock, once hacked, allows anyone with the hacked key to open any such lock instantly, even remotely. Add to that the fun of ransom-ware and who knows what else that comes along.
2. The company bragged about how many ex-Apple, Nokia, and Microsoft employees the company had. It made no mention of how many locksmith or hardware industry employees the company had--it appears not to have crossed their minds.
3. This unit had a sort of reserve battery if the main battery died. The reserve battery could only be replaced by the factory. If the reserve battery gave out, there was no way to open the lock short of blunt force trauma (finally, a use for scammers!) Never an issue with quality mechanical locks.
4. If one merely wanted a good looking lock, for the price of one of these, one could buy a nice Baldwin mortise lock set and have it professionally installed. And it would probably still be working when the grandkids inherited the house. The target demographic might have been young hipsters exercising their type of conspicuous consumption--but most of them rent a hip apartment in a hip part of town, and their landlords are not hip to them changing locks, even if they do glow in the dark.
5. The rage these days in silicon valley is to have one good idea, start up a company of youngsters who work 18 hours a day for stock options and free orange juice, then sell the company to one of the few big technology companies for millions of dollars. And then let them figure out how to manufacturer and distribute it, and what to do if it has profound security flaws. So they really wanted Assa-Abloy to buy them out. Assa-Abloy was smart enough to pass on that so-called smart lock. I do not think it is in keeping with true innovation to brainstorm a cool toy in an all-nighter, have some ex-Apple employees make the outside of it look cool, then hype it up and try to sell it for millions. The best innovators were people who were at least willing to build what they designed--Yale designed locks and built them, Best designed SFIC and built them, one guy started LAB and not only designed what they sold but became the expert on the types of Swiss Screw machines used (i.e., they have a side business rebuilding them for other companies), Mr. Framon made the Framon machine, etc. On the other hand, this company is folding simply because no one bought them out--that is one goofy business plan.
