Philips Hue just dropped its biggest product overhaul in years, launching budget Essentials bulbs starting at $15 — less than half the price of flagship models. The Dutch lighting giant also embraced Matter-over-Thread connectivity, directly targeting budget rivals like Govee and Tapo (60-80 words).
Signify's Philips Hue division just fired its biggest shot yet at budget smart lighting competitors. The company unveiled its most aggressive pricing strategy in years at IFA 2025 in Berlin, launching Essentials bulbs at $25 each or as low as $15 in multipacks — a dramatic departure from the $60 flagship models that built Hue's premium reputation.
The timing couldn't be more pointed. Govee has been eating into Hue's market share with $10 color-changing bulbs, while Nanoleaf and even Signify's own budget brand Wiz have pressured the premium positioning that once seemed unshakeable.
"It's about choice; we want to broaden our price points," Philips Hue CTO and founder George Yianni told The Verge. The admission reveals how competitive pressure has forced even the most premium smart lighting brand to adapt its strategy.
But Hue isn't just cutting costs — it's also making a strategic bet on interoperability. All new bulbs now support Matter-over-Thread, allowing direct pairing with Apple Home, Google Home, and Amazon Alexa without requiring Hue's proprietary bridge. It's a significant shift for a company that built its ecosystem around Zigbee's reliability.
"Thread gives people the choice, as the hardware is not locked to our ecosystem," Yianni explained during the announcement. The move addresses what he calls a major "barrier to entry" — the perceived complexity of bridge setup that budget competitors have exploited.
The Essentials line makes calculated compromises to hit aggressive price points. Unlike flagship models, the budget bulbs dim only to 2 percent brightness versus 0.2 percent on premium versions, consume slightly more energy, and lack guaranteed color matching across product generations. However, they maintain core Hue functionality including voice control integration and the new MotionAware technology that turns any bulb into a motion sensor when paired with the upgraded Bridge Pro ($89.99).
Hue's premium line isn't disappearing — it's being rebranded as ChromaSync to emphasize its precision color reproduction. "If you buy a bulb today and pair it with one you bought 10 years ago, they'll produce the exact color match, which is not something you find on most of our competitors," Yianni noted, defending the quality standards that justify premium pricing.
