China Camera Cost Increasing, Pricing Starting To Rise

By Isabella Cheng, Published Apr 20, 2021, 09:27am EDT

China surveillance camera prices are starting to rise, as a result of increasing raw materials costs due to chip supply chain constraints, IPVM has confirmed across numerous China manufacturers.

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In this report, IPVM examines:

  • Dahua communications on price adjustment
  • Raw materials cost increase due to chip supply constraints
  • Manufacturers absorb price increases
  • Hikvision emphasizes electronics "price has never been increased" before
  • Hikvision on supply chain constraint challenges
  • Hikvision "price adjustment notice"
  • Duration of supply constraints and price increases

Dahua *** *** ****** ******** "***** **********"

***** *** ******** ******** a ***** ********** ******, stating ***** **** "***** prices ** ****** ********* costs" ********* ********, ***********, as **** ** ********** and ********** *********:

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***** ******'* ******** ************* * ***** ********** notice** ***** **, ****, announcing **** *** ****** would ** *********** ** April **, ********* "********** costs ***** **** ********* enormously."

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*** ****** ***** ****** "production *****" ** *** materials ** *** *** reason *** "***** ********** France *** ** ****** to **** * ***** adjustment":

*************, ***** *** ********* of **** ****,production ***** ** ***** **** ********* ********** *** ** *** ********** ******** ** *** ********* ***** *** * *********** ****** ** *** ****** ********** *****, ****** *****, **********, *********, *** ********* ** *** ********* *******, ***. Therefore, in order to ensure the continuous supply of products and to maintain the level of service that you are entitled to expect, Dahua ********** ****** *** ** ****** *** ** **** * ***** **********. This adjustment will apply to all Dahua product lines. [emphasis added; translated from French]

Dahua *** ******* ** ***** *********

***** *** ********* ** IPVM **** ***** *** company *** "****** **** over *** **** ** months ** ***** ******* along ***** *********," "******" price ********* *** *** required. *******, ***** *** emphasized ******* ***** ********* affect "**** ** [*****'*] competitors, *** *****'* ********* are "******* ** **** size *** *****":

*** ******* ** *** global ******** ** ****** chains **** ********* ******* production *****. ***** ** have ****** **** **** the **** ** ****** to ***** ******* ***** these ********* ** *** customers, ** *** *** at * *****, **** most ** *** ***********, where ****** ***** *********** are ********. ***********, *** price *********** **’** ********* are ******* ** **** size *** *****. *** most ********* ******** **** is ** ****** *** build *** ******* ******* products ** *** ********. That ** *** ** are ********* **** **** after ***** *******, ** remain ****** *********** ** the ******. ***** *******, we **** ******* *** development ** ******** *** materials *** *** ********** to ****** ***********, *** also ******** ** ******* on ***** *** *****, along **** *** ******* effectiveness ** *** ********-******* solutions.

Raw ********* ***** **********, ********* ****** ******

******** ***** ******** *************, both ****** *** ******* of *****, **** ********* to **** **** ****** are ********** *** ***** cameras ** *****. **** of ***** ************* **** cited ******** ***** ******* supply ** * ***** reason *** *** ***** increases.

***** ***** ***** (****)****** ************* ** **** ******** waiting ***** *** ********** camera ****** ** ***-***** 2020, ************ ** ********* at * **** ******* in ********, *** **** chip ******** ********* ***** 4-5 ****** *** *** now ********** ** * months:

* ******* **** **** the ***** *** ****** in ****** *** ********* last ****, ** ***** be ********* ** *** end ** **** ****, but *** ******** **** no, *** *** ****** production ******** *** ********** exploded.It ***** **** ** *** ****** *** *** **** ****** ** **** ***, *** **** **** ****** *** *** ******** ** **********. [emphasis added]

**** ******** *** ******** downstream ****** *******, ** a ***** ******* ** a ***** ******** ********** wholesale ****** **** ******** camera ****** **** ********* significantly **** *** **** 6 ******:

*** ************ **** ** was ***** ** *****. In ********* **** ****, the **** ****** ****** with *** ****** ** 140 **** [~$** ***], and ********* ********* *****, and *** ** *** risen ** *** **** [~$30 ***]. ******** ******* have ********* ** ****** 30% ** **%.

*******, ****** ********* ****************** impact ********* *** **** cameras **** ** ***** cited ** *** ***** above (~$**-** ***). * $10 ******** ** * $20 ****** ** * 50% ********. *******, ******* selling * $*** ** $500 ****** **** **** these ********* **** **** significant (**% ** *% increase *. **% ********).

Many ************* ********* ***** *********

***** ****** *** ******** to ****, **** ************* are ********* ********* *** increase *** ********* ***** gross *******, ***** ** a ******** *********** *** some ***** ****** ******* outside ** ***** **** not *** ******** ***** increases.

**** ***** ** *** China ************ *** **** they *** ****** ********* to ******* ***** ********* for *** **** *****, but *** ****** *** uncertain:

** *** ****** *** same ********* ** ***** factories. *** ********* **** case, *****, *******, ****, led , ******* ***. all ******** ** ****. However, ******* ** *** plan **** ****, ** have ***** ********** ** stock *** *** *********. Currently, *** *** ** period, ***** ** ******. We *** *** **** about **, *** ** we *** *** ***** the **** ********, ** will ******** [*** ******]. We'll *** *** ** prepared.

Hikvision ********** *********** ****** **** "***** *********"

********* ***, ** *********, also ********** **** *********** prices **** ***** ********* in *** ****,********* * ******** ****-**** shift ******* ********* ****** in *** ****** ** overall **** ***** ********* may ***** **** ********* to ****** ***** ******* strategies:

Electronic ******** **** **** ******** ****** *** ** **** *****, *** **** **** ***** ********* ******. This time, the shortage may cause many industries to make some adjustments. What will happen in the long run? I don't know. [emphasis added]

** **** ****** ******** about ***** ****** ******* due ** ********* ***** and ******** ***** ******:

******** *** ** **** concerned ***** *** ***** profit ******.There ** * *** ** *********** ** ***** ****** ******, ** *** *** **** ******* ** *** ******** ** *****, ** *** ***** ****, *** ******* ** ***** ******. The gross profit margin of the industry has nothing to do with the characteristics of the industry, but is determined by the competition strategy within the industry. [emphasis added]

Hikvision ****** ** ****** ***** *********** ** ****** ******** ****

********* ****** *** ********* that *** ****** ** uncertain ** ******* ******** ****. ***** ********* ******* it *** ***** ********* currently, ** ** ******* for ****** ********** ** chips ******** ******** ** be *****:

The ****** ***** **** **** ***** ********** ** *** **** *** *****, *** *** ** *** **** *** *****. The challenges in the past few years have come from the uncertainty brought about by sanctions, including sanctions on Hikvision and sanctions on Huawei. We have done a good job in the past few years, including ***** **** *********** ** ********* **** ** *** ****** ** ********* and obtain a longer transition period ... Haikang has handled the issue of the main chip relatively well, and it **** *** **** **** ****** ** ******* ** *******, but in *** **** ***, *** ******* ******** ** ************** ***** ****** **** ********** to us. [emphasis added]

********* ***** **** *** "current ******** ** *** supply ***** ** ****** by ************ ************* ********** capacity" *** **** **** type ** ******* *** never **** *********** ******:

*** ******* ******** ** the ****** ***** **caused ** ************ ************* ********** ********. For example, the lack of semiconductors for automotive electronics has led to the suspension of production of automobile OEMs. This has never **** *********** ** *** ********** in the past 30 years. Advanced process semiconductors are not the only ones with a tight supply problem, but also products of conventional processes. [emphasis added]

** * ***** ** mitigating ****, ********* ****** it ** ******* ** work **** * ****** of ********* ********* ******* of ********* ** **** a ***:

**** *** *********** ** supply ***** ********,we **** *** **** **** *** ******** *** **** **** ** ********, *** ** **** ******** ********* ** *******. We will not disclose detailed information about specific suppliers, but our supply chain will definitely make a lot of preparations in advance, and increase the inventory of raw materials to ensure a smooth transition. [emphasis added]

*** **** *** ************* industry ** *****,we *** **** ******** ******** **********. We have a partnership with suppliers, not a simple buying and selling relationship. Supplier management is a complex system work, and it is difficult to answer this question in a few simple sentences. [emphasis added]

Hikvision '***** ********** ****** ******'

********* ** **** *** a '***** ********** ****** letter' **** ************* **********(*** ************)****** ** *********:

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** *** *** ** last *****, *****, ****** said ***** ****** *** Hikvision **** **********:

********* ********* *% **** month, **** **** ******* 10% **** *****

*******, ******* ** ******* tell **** **** ********* USA ******* *** *** been ********. ** *********'* CEO ******* **, ** such ***** *** **********, Hikvision *** *** ** choosing ** ****** ***** gross ****** ****** **** increase *****, ***** ***** be ************** ***** ******** about ****** ********* ** such ***** *********.

Supply ***********/***** ********* ********** ****

******** ************* ****** ****** shortage ****** *** ********* price ********* ** ******** for *** **** ** the ****, **** *** Shenzhen **** ******* ********* expecting ****** ****** ** not ** ******** ***** the *** ** ****:

********** *** **** ******** adjusting *** ********** ********** capacity ** ***** ********. The ***** ** ******** cyclical. **I ****** **** ** *** *** ** **** ****, ** ****** ** **********. [emphasis added]

****'* ********, *** ******,******* ****'* ******** *** warned **** ******** ****** will **** ********** **** and ******** **** ****:

Demand ** ***** ******, *** *** ******** ** ******** **** ******** ********** **** ****, *** *** ******** ***** ****. However, capacity is in redistribution.

**********

****** *** ***** ******* are ******* ******, ******** how ******* *** ******* they ****** ******* ** be ****. *******, ** semiconductor ******* ******** ** warn ***** *** ****-******* shortage ** ********, **** brings ** ****** *** rising ***** ****** ****** in *** ****-****, ********** once ******** ********* **** out.

* *** *********** ********* of ***** ********* *** their ********** ***** ******. If **** ******* ** resolved, ** *** **** no ****-**** *********** ****** but ** ** ***** for **** ****, ** could ******* ******** ****** to ************* ****** ******, non-China ********.

Vote / ****

Comments (3)

* ***** **** ** us *********** **** ********* eventually. *** ******** **** was **** ****** ** dump ***-****** ******** ** force ***** ************* ***, and **** ***** ****** once ***** *** **** dominance.

*** **** **** *** they *** ***** ** be ****** ** ******* on * **** ***** playing ***** *** ***** is ** ***** **** option *** **** ** force *** **********, ** makes ***** **** ***** prices ** ** ***** try *** **** ** profitable *******.

Agree
Disagree
Informative
Unhelpful
Funny

* ***** **** ** us *********** **** ********* eventually.

*** *** *** ***** formidable ** *** ******** of '*******' - ****** lots ** ********** ** nations **** *** *** China.

***** **** **** ****** above, *** **** *** semiconductor ******** ******* ** this ***** * ***** imagine **** *** *********** of **** ****** '********' at ***** *** **** time ***** **** ****** even ****** ** ************ vs ***** *********** **********.

Agree
Disagree
Informative
Unhelpful
Funny

****'* ** *********** ******* from **** ********* *** shortage ** ************** *** the ****** ** *** industries.

*************** *** ** ************* shortage *** ***

*** ***** ** *** who ***'* **** ***************, they *** *** ** the ******* ********* ** semi-conductors ******** *** **** are ********* **** ********* are ****** ** **** until *** ****** ** next **** ********* *********** anything **** *** *********** in **. *********, *** laws ** ****** *** demand *** ***** ** impact *** **** ** everything ** *** ****** months

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny
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