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)

Undisclosed Integrator #1

12/18/15 12:58pm
*** ***** **** *** ********.. ******* **** ***** ******* **** through *** ***** ******** ** ******. ** ********* ** **** they **** **** **** ***** ****** **** **** ** ** the ****** ********** ******* *********** ****, **** **** **** *** price **** ** ** * ***** ****. ** ********** ******* governments **** ******** *** ************ ** ******** **** ** ***** the ***.

Undisclosed Manufacturer #6

In reply to Undisclosed Integrator #1 | 12/21/15 04:39pm
*** **** *** *********** ****? *** ******* ** *** ****** side *** *** **** *****. **** & *** ******* ***** solution **** ***** ******** ***** **** *** ********* **** **** the ******** ** *** ******. *** *** ******* **** *** bottom ** *** *******. *** *****.

James Wickes

12/18/15 12:59pm

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

Thumbnail newheadshot

Sean Nelson

Nelly Security | 12/18/15 02:36pm

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

John Honovich

IPVM | In reply to Sean Nelson | 12/18/15 02:47pm

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

* *****.

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

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

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

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

Undisclosed Manufacturer #2

12/18/15 02:40pm

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

Constantine Platt

12/18/15 02:51pm
****** **** * ***** **** *** * *****. ****** *** product ****** *** ***** *** ***, **** *** *** ******* government ***** * ******...

John Honovich

IPVM | In reply to Constantine Platt | 12/18/15 04:02pm

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

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

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

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

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

Undisclosed #3

12/19/15 12:27am

Undisclosed Manufacturer #4

12/20/15 09:19am

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

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

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

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

John Honovich

IPVM | In reply to Undisclosed Manufacturer #4 | 12/20/15 11:56am

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

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

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

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

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

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

Undisclosed Manufacturer #5

12/21/15 03:11pm

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

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

Undisclosed Manufacturer #6

In reply to Undisclosed Manufacturer #5 | 12/21/15 04:36pm

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

Undisclosed #7

In reply to Undisclosed Manufacturer #5 | 12/21/15 04:53pm

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

** ********?

Undisclosed Manufacturer #5

In reply to Undisclosed #7 | 12/28/15 03:05pm
***-******* ** *** ******* **********.

Undisclosed #7

In reply to Undisclosed Manufacturer #5 | 12/28/15 09:10pm

*** *** **** ** ******?

Dennis Dyer

12/22/15 03:03pm

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

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

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

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

John Honovich

IPVM | In reply to Dennis Dyer | 12/22/15 03:14pm

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

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

Dennis Dyer

In reply to John Honovich | 12/22/15 06:02pm

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

John Honovich

IPVM | In reply to Dennis Dyer | 12/22/15 07:15pm

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

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

Undisclosed #3

12/22/15 03:38pm

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

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

Konstantin Avramenko

12/23/15 03:50pm

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

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

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

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