Panasonic Slashes IP Camera Pricing

I imagine you will see considerable consolidation over the next 2 years, not as a result of the top brands dropping their prices but the low cost manufacturers upping their game and commoditising the market, further more the potential for HD-CVI and similar low cost HD solutions will further force price erosion. It's going to be a fierce battle ground, many of those making ground will care little about protecting value in the channel. Manufacturers who foresee this may be looking for merger or cash-out opportunities, unless they are confident they have a strategy to differentiate or remain competitive on similar product lines...

Andrew,

Good points. A lot of it has to do with target gross margins that the manufacturer wants/ finds acceptable.

Now maybe Samsung's costs of good sold is somewhat less than Panasonic/Sony's but I am pretty sure Samsung is simply willing to take lower gross margins. They'll make it up on volume, etc...

My experience is that established brands hate cutting prices because executive management sees that as an excuse and offense to their overall position (e.g., "We're Panasonic, if you're (security division) not making your numbers, it's your fault, not the price.")

Engineering specs, as opposed to features, can vary widely between manufactureres and between models from the same manufacturer.

<<Perhaps I am incredibly naive about manufacturing costs, but when Panasonic, Sony and Axis are charging roughly double what Samsung charges for pretty comparable features, and in some cases better performance, I just don't see a 23% price drop as anything more than a long overdue excursion toward the Land of Sane Pricing. >>

Hi Rick,

That is certainly a concern but what is the alternative? Start with really low pricing and then increase until you see a significant sales drop off. Big companies tend to hate low pricing :)

The other thing I've heard from manufacturers when discussing staring low and raising prices is that they feel that they cannot justify the price increase because the product has stayed the same.

Tough call either way unless you price it just right out of the box!

Thanks you undisclosed Panasonic sales person.

We have tested all the brands you've mentioned extensively.

Undisclosed B- I cannot talk for other Chinese manufacturers, but Hikvision is one of the leading procurers of quality components from Sony, TI, etc. I belive these are well know top quality parts.

I hope they do manage to maintain the margin it is in our own interest. The question is however, how is the large screen TV market these days or the Sony, Nokia and Motorola names in the mobile phone market. Badges only last so long in electronics. It has not even hit the fan yet in mobiles as the unknowns from China are bringing out some excellent phones have a look at the Oppo find 7.

Undisclosed C- You can believe anything you want. Hikvision component volume is so high, I assure you the work very closely with our R&D and we get pricing according to volume, not by buying B-Grade components. While Hikvision is not perfect (yet), it seems to me that quality and performance as judged by independent tests and customer feedback is improving everyday.