Alphabet's Nest Working on Cheaper Thermostat, Home Security System

Nest, the pioneer of the iPhone-like digital thermostat, is readying several new products in its quest to modernize the home.

A Nest Labs Inc. thermostat is displayed during an event in San Francisco, California, U.S., on Wednesday, June 17, 2015.

Photographer: David Paul Morris/Bloomberg
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Alphabet Inc.'s Nest, seeking a bigger share of the connected home market, is developing a cheaper version of its flagship thermostat and new home security products, according to a person familiar with the matter.

The company is working on a version of its "learning thermostat," which adjusts the temperature based on usage patterns, that would sell for under $200, the person said. The current version sells for $249. The cheaper model would include less expensive components and at least one internal prototype lacks the flagship model's metal edges, the person said.