Hikvision Dedicates $1.5 Billion To Dominate Western Market

Author: John Honovich, Published on Dec 18, 2015

During our recent China trip, many companies inside China, including Dahua, lamented how Hikvision is destroying the video surveillance market, with aggressive continuous price drops to drive their expansion.

Last week, we exposed how Hikvision got $3 billion from a Chinese government bank but one question was not answered: How much of that money was going to be used outside of China? The answer: $1.5 billion.

In this note, we examine the impact of $1.5 billion dedicated for Hikvision's global expansion, their $10 billion goal and how they expect only a few companies will remain when they are finished.

****** *** ****** ***** ****, **** ********* ****** *****,********* *****, ******** *** ********* ** ********** *** ***** ************ ******, with ********** ********** ***** ***** ** ***** ***** *********.

**** ****, ** ******* ************ *** $* ******* **** * ******* ********** ******* *** ******** *** *** ********: *** **** ** **** money *** ***** ** ** **** ******* ** *****? *********: $*.* *******.

** **** ****, ** ******* *** ****** ** $*.* ******* dedicated *** *********'* ****** *********, ***** $** ******* **** *** how **** ****** **** * *** ********* **** ****** **** they *** ********.

[***************]

How *** ** $*.* ******* *** ***** ************?

******* *** ****** ******* ** ****, ********, *******, *********, *****, Arecont, ****, *** ******* *** **** ** ~$*.* *******. **'* a ********** ****** *** *** ***** ************ ********.

Excludes Manufacturing and *&*

**** **** ***********, *** $*.* ******* ** *** **** ** primarily *** *****, ********* *** *******, ** ********* **** *********** all ************* *** *&* ****** ** *****. *** ****** *****, another $*.* ******* ** ******* ********** ***** **** ** **** for ********* *****.

Unconcerned ***** *******

**** $*.* ******* *** ***** * *********** ********* ****** ** expansion ** *** ****, *********** **** ** *********'* *********** ** absorb ****** ** **** ******** ** **** *****.

** **** ***** **** *** *********** ******* ** **** ******** ** ** unconcerned ***** *******. *** **** ******* ****** **** ** ******** with **** *** *** ******.

Major ************ ********

**************:

"********* ** '****** ****' ** *** **** ** ********* ****** the ******** ********, *** **** ********* **** ************ *&* ** its *** ** **** ****.

*** ** ***********, ********* ** **** ****** ** '**** ******' video, ** ****. **** *** **** ****** ******* ** *********, or ** *** **** * **** ** ******** ****’* ******** to ******** ********."

***** *** ********** ********* *** **** ******* ** ************ ****** it ** *** **** **** ********* ** ****** **** ********* from ********* **** ****, *******, ****, *******, ***., ****** **** buying *** ** ****.

$10 ******* *** ****

****** *****, ********* ********* ************ $** ******* *** ******* ****. *** ****, ********* **** do ~$* ******* ***** *******, **** ~$* ******* ****** ***** and $* ******* *******.

** *** *** ****, ****'* '****' ** ******** ** ***% and **** *** ***** ** ** **%+ ****** ** ****, so *** ***** **** ** **********. ** *** ***** ****, how **** **** ***** *** **** **** ****** ** ***** and *** **** **** *** *** ******* ********** ***** ** surveillance ************** ****** *** **** ****** **** **** **** ** the **** *** *****?

Only * *** ***** ********* **** ******

********* ***********'* ********, ** * ** ** *****, **** * *** large ********* **** ** **** ** *** ***** ************ ********.

******, **** ***** **** ********* **** ******* ** ********* **** ****.

Western *********

** ** ***** **** ***** **** ********** ** **********. ********* could **** ********, **** ***** ** ******** ** ******* ** the ******* ******* ** **********, ** ** ********* ******* ****, the *********** ******** ***** ******, ***. ******, ** **** *****, the ******* ********** *** ****** ** **** ** **** *********** Hikvision.

*******, $*.* ******* ** ** ******* *** ************* ****** *** *** video ************ ******* ** *** *** ************* *********.

Comments (22)

*** ***** **** *** ********.. ******* **** ***** ******* **** through *** ***** ******** ** ******. ** ********* ** **** they **** **** **** ***** ****** **** **** ** ** the ****** ********** ******* *********** ****, **** **** **** *** price **** ** ** * ***** ****. ** ********** ******* governments **** ******** *** ************ ** ******** **** ** ***** the ***.
*** **** *** *********** ****? *** ******* ** *** ****** side *** *** **** *****. **** & *** ******* ***** solution **** ***** ******** ***** **** *** ********* **** **** the ******** ** *** ******. *** *** ******* **** *** bottom ** *** *******. *** *****.

*** ******** ** ** ************ **** ** *********** ***** ** the ******* ********** ****** **** * **** **** *** ****** surveillance/security ****** **** ***** ********* ****** ..... ********.

* **** *** **** ********* *** *** ******** *** **** confident ***** *** ** *** ** *** ******* ********* ***** is *** * ***** **** **** **** ** **********. **** are ******* ** ***** **** **** **** ** ** *** being *** **** ** ** *** **** **** **** **** anyone **** ******. *** ******* **** * ***, ** **** most ***** ******* ************* *** ******* ** ****** ** ** Hikvision ** ****** ** **** *********. **** *** ** **** Hikvision, *** **** *** ** **** *****, **** ***** ** being **** *** ******* *** ** ******* ** **, *** to ************* ** ****** **** ******** ** ******** *** *****. If *** ***** ******* ********, **** ** ****** ** *** service **** *** ***** ** *********. * ****** ****** ** survive *** *****.

"* **** *** **** ********* *** *** ******** *** **** confident ***** *** ** *** ** *** ******* *********"

* *****.

"***** ** *** * ***** **** **** **** ** **********."

**** ********* ** ******** *** * ** *** ***** ** helps **** **** *** ******* ********** *********. *** ********** ********* and ******* ******* ***** **** **** ********* ***** ********* *** clear.

"**** *** ** **** *********, *** **** *** ** **** point, **** ***** ** ***** **** *** ******* *** ** amazing ** **, *** ** ************* ** ****** **** ******** or ******** *** *****.** *** ***** ******* ********, **** ** ****** ** *** service **** *** ***** ** *********."

* ** *** **** **** **** ** ******** *** ******* Chinese *********. *** *******, ********* *** ***** ***+ ** ********* already, **** **** * **** ** **** ** ***** ****** show, *****, *****, ** ******, ***. *** **** **** ** incredibly *** ******. *** ** *** **** **** *** **** the ****** **, ********* **** ********* **** *** ***** *****.

***** **** ********** ** * **** ***** **** *** ***** Inc, **** ***** *** ***** ***** ** *** ******* ******** demand *********** ******* ** ***** **** *********** ***** *** ****** distortive **********

****** **** * ***** **** *** * *****. ****** *** product ****** *** ***** *** ***, **** *** *** ******* government ***** * ******...

*** **** ****** / ***-***** **** ** ******:

  1. ******** *** ******* ********* (**** ******** ** ********, ******, *** OEMs ** *** ****), **** **** ** *** **** ************* exit *** ****** *** ***** ** ***** *********** / *********. When **** *******, *** ******* *********** **** **** ***** ********, allowing ********** ** ********* *******.
  2. *** ** ******* ************* ***** **** ****** *** ******** ******* cost *** *****, *********, *******, ***.

* *** * = *******.

*********** *** ******* ********* ***** **** ****** *****, **** ** them *** * ***, **** **** *** **** **** ****** certainly ** **** *****. ** ****, ** ********* *** **** the ******** **, ** **** *** **** ****** (*** **) sell *** ** ***** ****.

******* ** ***** ** **** ************ ** **, ****** ******* once ********* ** ****** ********* ** ******* *******, **** *********** will ***** ******* **** ******* **. * ***** ** **** see **** ** *** ** ** ****. ** ****** ** integrators ** * ****** **** *********,*********** ******** ** ********* *** *********** **** ***** ******** ***** with ****, ******* *********. ** *****, *********** *** *** ****** a *******, ***** *** *********** ****** ** ******** *** ********* sells *** ******** ****** *********. ** *** ****, **** ** going ** ** * *** *******.

* ****** *** ******* ***********, ************ ** ***** ******* *****, allowing ******* ********** ******** ********* ** ******** * ********** ******....************ when **** ****** ** ********** ************ **** *** * ***** bias ******* ********/***** ************......

* ***** *** **** ******** *** ****** *** ********/**** ****** with **'* ******** *** ***** ********* **** ******** ********* **** as ********, ********, **************, ********* (*********/***/***/***********/*****) **** ***** ******* ********** and ***** ******* ************* **** ******* * ******* ******** *********** to *** *********** ****** **** * '*** **** * *****'......

** *** ***** ******** ********* **** ** ****....**** *** ******** their ***** ** ************ **** *** **** *** ** *** West, ***** ***** ***** ** ****** - ***** ** ****** an ***** *** ** **** ******* **** **** ***** ****** will **** ****** ******* *** ***** ** *** ******* ***********.

** ** ********** **** * ******* **** *** *** ******** purely *** ** ********** **********, *** * ********** ***** **** will ******** * ******* ****** ** *** ******** *** *** the ***** ** **.

"* ***** *** **** ******** *** ****** *** ********/**** ******"

**'* ********* ******* **** ***.

* ** ***** ***** ** * *********** *********. ********* ** clearly ******* **** ** ******* ** ********* **** ***** = Hikvision = ******* **********. ** *** **** ******* ********* ******* that **********, * *** **** ** **** ********* ***** ***** their ********.

"** *** ***** ******** ********* **** ** ****....**** *** ******** their ***** ** ************ **** *** ****"

****'* ** *********** *****. ****'** ********* ****** ** ** *** low ***, **** *****, *** ******** ******** **** ********* ********* using *********'* ******* ****** (*.*., *****). * ** ******* ** see **** **** *** ** ** **** *********.

* ** ***** **** ** *** ****** *** ** *** market (********* **** ***** ***********) **** **** ***** ** **** motivated *** ****** ******** ** **** **** ******* ********* ***** and **** ** ***** ** **** **** ***** ********** ********** base.

*******'* *** ********** ** ********** *** *******?

****** ****** ** ********** ********* ** *** ** ** * pawn ** *** ******* **** **** *** ******-* ***'* **** to *** **** **** ***** * ** ******* ******** ******* for ********* *** *** *** ****** **** *** *** ********.

***'* **** ******* *** ***** ** **** ******? ***

...* ***'* **** ** *** **** **** ***** * ** citizen ******** ******* *** *********...

** ********?

***-******* ** *** ******* **********.

* ***** ** ***** ** ******* *******'* ***. ** **** much ********* **** ***** ** ***** *** ***? ********* ***** has ** ******* ** *** ** ****. ***** *** * bunch ** ***** ****** *** **** **'* ** ***** **** will ***** ** ******. *** **** *** ** ****** ** Vietnam *** ***** **** ********** **** ** **** **** ***** relations **** **** ******, ***** ***** *** ***** **** *** to.

*** ********** *** ******* ************** **** **** **** ********* ** there ****. ** *** ***** **** ** ****** - ***** has **% *** **** ********* *** **** - ** (***) have *** ******* ********* *** **** ** *** ********* ***** and * ****** ******* ****** - ******* **** ** **** how **** ******* *** ** **?

***** **** ** ********, *** **** ** *** **** ******* and ****** ******* ** *** *** ********** ** *** *****. The *********** ***'* ***** ** ****** *** ****, **'* *** in *** ***. ** **** ** ****.

***** *********, ***** ********, *** ***** *** **** ** ***.

"** **** **** ********* **** ***** ** ***** *** ***?"

******, *** ** **** **** ***** ** ***** *** ***?

***** ********* *** ****** *** *** *** ******** *** ***** support. * ** ******* ** *** **** *** *.* *** is ***** ** ** ***** ** *** *** ******* ** addition ** *** ******* ***** ** ***** ** **** ** say ***** **** ***** ** *** ****.

***** ***** ***** ** **** ** *** **** ** ***** to ***** **** ******. ******, ******* ***** * *** ** money.

****'* ************* ***** ********* ** *** *********** ** **** ****** prices *** **** *** *******, *****/********?

*** *** ** * ******* ************* ****** *** *** *******.

* ******* *** **** *** ********* *** ******* *** ********.

*** ** ******** ********* ******* ********** ** ***

* **** ***** ** ***** ******** ***** ***** ** ** 600 ******* ***** ($***.** *******)

****** **** ** *******:***.**/*******

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