Collapsed Growth, Collapsed Pricing, IHS Now Admits
By: John Honovich, Published on Jun 22, 2016Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.
Related Reports
Avigilon Hires Hikvision NA Head of Marketing As VP of Global Marketing
on Jan 25, 2019
Avigilon has hired Alex Asnovich [link no longer available], who left Hikvision as Head of Marketing North America, to becomes Avigilon's Vice...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low
on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Dahua Posts Slowing But Strong Revenue Growth 2018
on Mar 04, 2019
Despite significant job cuts in China, Dahua's revenues grew more than 25% last year hitting a total of ~$3.5 billion USD, according to its latest...
Hikvision Admits USA Sales Falling
on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling.
Less than a year after the US government passed a...
RaySharp Revealed - Major China OEM For Western Consumer Video Surveillance
on Jul 02, 2019
RaySharp is mostly unknown, even among people in the video surveillance industry, though it is a major supplier of OEM surveillance equipment such...
Hikvision USA Giving Free Cameras In Biggest Flash Sale
on Jun 26, 2019
Hikvision redefined sales promotions in the US video surveillance market, starting at the end of 2015, with across the board discounts.
Now,...
Vivotek Revenue Soars
on Aug 05, 2019
Vivotek's revenue has soared so far in 2019, growing 45%.
Inside this note, we examine import records and see who is driving Vivotek's growth...
In China, Foreign AI Companies Banned or Disadvantaged, Says Top China AI Company
on Aug 28, 2019
Non-China (PRC) companies are prejudiced and unfairly targeted inside of the PRC's booming AI market, which not only denies them revenue inside of...
Resideo Stock Plunges 37%, CFO Ousted
on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today.
Not even a year...
NetPosa Revenue Plunges 90%
on Nov 04, 2019
Revenue for China's long-time largest VMS provider NetPosa plunged 90% in the latest quarter, adding to the firm's serious financial...
Most Recent Industry Reports
Hazardous & Explosion Proof Access Control Tutorial
on Feb 27, 2020
Controlling access to hazardous environments requires equipment meeting specific ratings that certify they will not start fires or will not...
Motorola / Avigilon Drops ISC West
on Feb 26, 2020
Motorola Solutions has pulled out of ISC West 2020 effective immediately, because of coronavirus concerns, IPVM has learned.
This is done amidst...
Cancel or Not? Industry Split Over ISC West
on Feb 26, 2020
The industry is split, polarized, over whether ISC West 2020 should run or be canceled.
New IPVM survey results of 400+ respondents show heated...
Coronavirus Hits Sony, Bosch Says Switch
on Feb 26, 2020
Sony's fall in video surveillance has been severe over the past decade. Now, they may be done.
In this note, we examine Bosch's new...
Video Surveillance Cameras 101
on Feb 25, 2020
Cameras come in many shapes, sizes and specifications. This 101 examines the basics of cameras and features used in 2020.
In this report, we...
Favorite Video Analytic Manufacturers 2020
on Feb 25, 2020
Video analytics is now as hot as ever, driven by the excitement of advancing deep learning offers. But what are actually integrator's...
Latest London Police Facial Recognition Suffers Serious Issues
on Feb 24, 2020
On February 20, IPVM visited another live face rec deployment by London police, but this time the system was thwarted by technical problems and...
Masks Cause Major Facial Recognition Problems
on Feb 24, 2020
Coronavirus is spurring an increase in the use of medical masks, which new IPVM test results show cause major problems for facial recognition...
Every VMS Will Become a VSaaS
on Feb 21, 2020
VMS is ending.
Soon every VMS will be a VSaaS. Competitive dynamics will be redrawn.
What does this mean?
VMS Historically...
Video Surveillance 101 Course - Last Chance
on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...
Comments (7)
Undisclosed #1
On the bright(er) side, IHS also reporting more IP cameras shipped than non-ip cameras in 2015. Which may be the first year ever.
Yay!
It also may be the last year for some time.
Create New Topic
Jonathan Lawry
I heard it said, from an industry great, "IHS typically hires impressionable recent college grads with no industry experience. They always estimate awesome growth at the beginning of the year, and sharply revise down mid year. Why would anyone buy their research?"
This seems to validate that statement.
Create New Topic
Horace Lasell
"at some point in the next few years, when most integrators accept selling similar low cost Chinese products, the advantage for early adopter integrators will disappear and integrators will face lower total margins and more competitive stress from larger scale direct purchasing from stores and the Internet."
To carry the argument to the extreme, let's try to imagine what might happen if hardware costs were close to zero. If China's economy experiences a truly dramatic shock, product might be available for little more than the cost of shipping, possibly as long as there's inventory to liquidate -- perhaps a year or so?
Even under such circumstances, the big boys will always have work. Customers with a pressing need but not much market awareness will expect that you can't go wrong using ADT, for example, to install your marked-up free hardware.
Experienced customers may have learned that an expert local installer can deliver better value. I'd like to imagine that top-notch installers will always be in demand, regardless of hardware commodity pricing.
On the low end, installers who work for peanuts will always attract a certain clientele.
Until the market rights itself, there should be a blossoming of work, when you consider that the price of entry will never be better.
As for bulk discounts, as hardware becomes an increasingly small fraction of the installation price, hardware discounts should become less relevant than brand name, local reputation, or price of labor.
Unfortunately, under such circumstances, it would seem as if manufacturers would have to be capable of treading water for a while in order to survive.
Create New Topic