> They beat this by just making the product super easy to install by the consumer
I think it was more than that, I cannot possibly overstate how stupidly better the design/UX was compared to alternatives. In my home I spent years looking for a replacement for the ancient, round thermostat with a mercury switch. That thermostat is a marvel: you spin the dial with instant visual feedback, and there is an off/heat/ac switch. That's it! The Nest just added networking.
I think it was more than that, I cannot possibly overstate how stupidly better the design/UX was compared to alternatives. In my home I spent years looking for a replacement for the ancient, round thermostat with a mercury switch. That thermostat is a marvel: you spin the dial with instant visual feedback, and there is an off/heat/ac switch. That's it! The Nest just added networking.