The Internet of Things, whose underlying vision and technologies aim at bridging the physical and digital worlds together, lead to the creation of new types of applications coupling Web services with everyday products. Such product-oriented applications, which enable the functional exposition, control or enhancement of artifacts that embed information processing capabilities, question the established design principles and conventions. They open up the possibility for Internet-enabled products, whose functions can be “augmented” and adapted to better support users' changing needs, to be designed. This research, which is at the intersection of Design Science, Ubiquitous Computing and Human-Computer Interactions, aims at studying the impact brought about by applications on product design. It highlights the need to build an application model that facilitates their representation by users, and to explore the pragmatic issues rose by their integration into products. It leads to the definition and evaluation, through practice, of principles for the design of augmented products' form and interactions. It describes the ductility of future products, the novel coupling between functions, behavior and structure they implement and their potential evolutions. This work contributes to the Internet of Things research by reframing the discussion and by providing researchers and practitioners with tools that can be leveraged during the design process.