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Analysts also said China's shift to focus on dealing with the three major tasks next year will help improve its ability to innovate.

And the growth potential is huge, as smart home technology has only reached a penetration rate of 5 percent. The smart home industry is therefore poised to enter a period of rapid expansion, according to the consultancy.

Anastasia Korobova, a senior researcher on China at the Russian Academy of Sciences, said the measures taken by Chinese government were "rapid and with determination" considering the high density of population in big Chinese cities.

An upward trend

And now one of the company’s earliest investors, angel investor and political activist Nick Hanauer, says he’s disappointed that the company he helped get off the ground hasn’t done more to give back.