The IoT is the Internet of Things. Smart bulbs, Nest cameras, alexa devices, automatic garage door openers everywhere, smart fridges.
Pretty much everyday things that can be controlled from your phone or computer by connecting it to the internet.
The way it works is that it pushed an update to run these apps from older devices. So you can take the battery out of your old phone, connect it to a smart IoT device without having to buy another smart hub for that tbing, and let your phone run it instead. Saves silicone and money.
Edit: After reading more carefully, this also allows them to be full-fledged IoT devices. Sound or video sensors, smart hubs, etc.