Hikvision Slashes Prices to End 2015

I believe this doesn't apply to sale items and project registrations, which is basically the most popular and competively priced items. Same difference as their regular sales and project registration discounts, nothing crazy doing here for them, just status quo.

Agreed - VMS price slashing needs to happen next, whether by HIK or others. $100+ for a VMS license when HD IP cameras are sub $100? Insane.

I think that even if we calculate that -15% discount from ADI you anyway won't reach prices which we have here in Baltics :) So believe me Hikvision really has some reserves to cut the price. The same with iVMS5200.

As for "whats the point to keep such a low price" they see the point. First of all government is happy to see high educated people of Hangzhou working in Hikvisions factories. They are happy to pay higher salaries to simulate chinese internal consumption. So I would say Hikvision is more social project. Where they want to show their Hi-tech, power and social responsibility for their people. For HDD we have how many 2 global players? So I think Hikvision is going somewhere same direction to be one of 2 or 3 in globe. In any case it will be interesting to monitor these processes plus Uniview (UNV) have joined the club as well :)

Why are you assuming they aren't making money (as I duck waiting for John to bring up some IPVM post I've failed to re-read.)

Also is it possible that volume flowing across the export delivery path might be their goal. Maybe they booked a dozen or two too many panamax carriers to bring product over.

Hi

I haven't read all the posts but many seem to think Hikvision is losing money. How do we know that? When a real PC able to run windows (the Intel PC on a stick) is priced at less than $150 why can't a camera (simpler by far) cost even less? Is Intel losing on the stick? Please go to Alibaba and look at the price of several items ... Are all these companies losing money?

Interesting point and one I am currently struggling with: When a good to very good camera cost <$100. How can you justify a $300 VMS license? We have recently tried the iVMS 4200 you tested earlier. For many customers that is all they need... If the iVMS5200 is true client-server and as good as advertised/presumed, there is a revolution in the making. We will see a whole slew of VMS stalwarts fade away.

This reminds me of the entry of Japanese car manufacturers in the US market. The old Guard kept on saying that it couldn't be done and that Japanese Cos were dumping .. Years later the big 3 had to adapt or disappear, they are striving now.

I sincerely believe the days of $300 VMS licenses are over or will be very soon ..maybe less than 3 years ... We better prepare ourselves for these times.

John

Fair enough. A question do you know Hikvision Cost Structure?

A few things:

1. They have access to the manufacturers bed of the World? Every single company you can think of, has some or all of their stuff Made in China. My reference to Alibaba is that they can get these stuffs made at an incredibly low price. The same companies able to turn around and produce the Walmart Webcam sold in the US for $30 would be so pleased to have that kind of solid , stable customer.
2. Hardware keeps on falling. For everyone mind you but for them see above.
3. They have a large R&D Department. And they are not sitting on their laurels.
4. I do understand that Support, Marketing and Sales are not cheap but what kind of numbers would you put on its % of their income? 10% look seriously large for me and it would be $150,000,000... more than most other manufacturer can dream of ( IIRC they had sales of 1.5 B$ or am I mistaken?)
5. I don't see Hikvision advertising any differently from other manufacturers. I could be wrong.
6. We seem to dismiss that they offer incredibly high value for the price and that drives sales via Words-of-mouth Internet style. It is very hard for me not to automatically look for Hik in any application/bid/project unless specified otherwise. Their offerings are seriously good to excellent.
7. We can at the end say that it isn't fair since they are backed by the Chinese government and they have all the large contracts and they are bent on World Domination. That's an entirely different discussion...

If you are discussing about prices on Aliabab or Aliexpress check this website: http://search.jd.com/Search?keyword=hikvision&enc=utf-8&wq=hikvision&pvid=otnif2ji.4jtzk8

If you are interested in EZVIZ (Hiks retail brand) you can also check here: http://search.jd.com/Search?keyword=Ezviz&enc=utf-8&wq=Ezviz&pvid=wsqif2ji.4jtzk8

EZVIZ C2 mini for USA should be 70USD including all taxes for Europe 100 Euro. But in China they offer 199RMB approx. 30 USD. So there are space even if to compare sales prices. I guess Hikvision is innovative enough (somtimes maybe even more than these mentioned brands like Avigilon, Axis or whatever) to reach good efficiency level and to have low costs.

For 2015 they have lot of new products in high resolution and many verticals so I guess we will keep discussing this "wtf Hikvision is doing" topic ;)