Q-See Going Out of Business

By Isabella Cheng, Published Jan 19, 2021, 11:28am EST (Info+)

Q-See is going out of business effective January 31st, 2021. The once mega-budget surveillance provider may cause significant problems in how it is being shut down.

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In this report, we examine Q-See's history and business, including:

  • Closure and effects
  • Major OEM partners, including Dahua, Uniview, TVT, Raysharp
  • 2007-2019 growth pattern
  • Competitive Pressures
  • Q-See Cloud analyzed and closure impact

**********

*-***, ******* ** ****, *** **** a *********** ******-**-******** ****** ****** ********, selling **** ****** *** ** ****** big-box ****** ****** (*.*. **** *****, Costco). **** ****** ** ****** **** **** ** ******** $** ******* ** *******, ***** we ******** ** ~* ******* *******, a *********** ******, ************ *** ****. Taking **** ******* *** ******** ******* and *** ****** ** **** ** has **** ********* (****** ** *****), millions ** *-*** ******* **** **** sold.

Q-See's ******* ********* *******

*-***'***************** *** ******** **** ** **** down ** ******* ****, ****, ******* customers ** "**** *********** ******* ** their ******** ***** ** ******* ****, 2021."

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*-***'* ****** *** ********, *******, *** market **********:

*************, *** ** *************-**,********* ****** ** ***** ***** ****, uncertainty *********** ********* ********* ********* ******* ********** *** **** ** very ********* *** ** ** ******** doing ********.

***** *-***'* ****-******* ****** **** **** up ***** ***** **, ****, ** will ** *********** *** ***** ******* by ******* **.

*-*** *** *** ******* ** ******* IPVM's ******** *** ******* ** *** closure.

Closure ******* ******** ** *******

*-***'* ******* *** ********** **** **** of *** ***** ******** **** ****** many ***** *** **** ****** *** are ***** ***** *** *******. ***** the ***** ** **** ****, ***** will **** ** **** ******* ** continue ** **** ***** ******* ********. Q-See ****** ** *** *******:

** **** **** **** *********** ** how ** ***** ****** ******* ***** IP ******* ****** **** **** ********** or ****** ******* ****, ****.

*******, **** *-*** ***** **** ****** their ******* ****** *****, ********** ***** the **** ** ********* / ***** support, *** **** ******** **** ******* up **** ********** ** ***** ***.

Major *** ********: *****, ***, *******, ********

*-***'* ***** ***** *** ******** ******** Dahua, ***, *** *******, *** ** a ****** ******, ********. *** ** these ********, *-*** *** ***** *** most (~***,*** **) **** *** **** the **** *** *****, ****-****. ***** was * ***** ****** **** ~***,*** lb, *****, *** ****** *** **** a ****** ****** ** ****, **** and ****-****. *-*** ******** ~***,*** ** from ******* *** ~**,*** ** **** Raysharp ** ****, *** **** **** on ****** ** ***** *-*** ******** from ******* *** ********.

*******, *** ******** ** *** ******** are ******** ***********, ***** *** **** "Q-See ************* *******" ** "******* ********** Solutions", ****** **** ** *** ****.

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***** *-***'* ****** ******* *** *** disclose *** ****** ************ *** **** of ***** *********, ******* ******** ******* have ********** ***** ** *-***'* **** common ****** ** *** **** ******.

2007-2013: ********* ******, ******** ****** ***** ** **** ** *.*+ ******* ******

*-***'* ******** ******** ****** **** **** ~500,000 ** ** **** ** *** peak ** *.* ******* ** ** 2013.

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** ******** *.* ******* *** ** cameras ** ** **** * ******* camera *****, ********* ** *+ ******* cameras ** **** ** **** **** frame . **** *** *-***'* ****, in ***** ** ******** ******* $** million *** ** *******.

2014-2016: ******** ****** ****** ** *****

***** *-*** ************ *********** ****** *** 6 ***** ** ***** ****, **** marked *** ***** ** * *****.

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** ****, *-*** ******** ***** *.* million ** **** *** **. ***** this ** ***** ** ***** * significant ****** *** ****** ** *******, it ** ****** **% **** **** what *-*** *** **** ******** ** in ****.

2017-2019: ******** ****** ************ *****

** ****, *-***'* ******** ****** **** dramatically, **** **%, **** *.* ******* lb ** **** ** **** ~***,*** lb ** ****. **** ******** ** roughly ********** ** *** **** *-*** had **** ********* ** ****. **** dramatic **** ** **** ***** ***** as ** ** ****** * ******* of ******* *************/*-***'* **** ******** ******** the ** ****** ** ***** ***.

** ****, *-***'* ******** ********* **** more ** ~***,*** **, ***** ** still ************* ***** ** *** **** in ****, *** ************ **** **** what ** *** ******** ** ****. It ** ******* *** *-*** *** a ****** ******** ***** ** ****, although **** *** *** *** **** in ***** ** ******** ******** **** Uniview *** ********.

*******, **** ******** *** *** **** for ****, ** ******* **** *-*** only ******** ~***,*** ** ** ******** in *** ** ****. **** ** the ******** ****** *-*** *** **** imported ** *** ********* ******* ****** back ** ****.

2020 *********** *******

**** ***** ** ******* ** *-*** receiving ********* ** *** ** ****, but **** **** *** *********** **** they ******** ** ********* ** ********* can ********* ****** ** **** ***** shipping *******. *******, *-*** *** *** active ** ********* *** ******** ** 2020, ** *** **** *********** **** on ****** *****, **** ******** *** Twitter, *** **** ****** **** ***** its **** ** ****** *****.

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*-***'* ******* ************ ***** **** *** a *********** **** ** **** ******** that *-***'* ******** *** **** ** some ******* *** * *** *****, and *****-** *** ****** *** **** straw **** ****** *** ***** *******.

Pressure **** ***** ********* ******** ** ****** ********

*-***'* ****** ** ********* *** ** the ******** ** ***** ********* ******** into *** ** ******. ***** ***** companies **** ***** ******** ** ********* like *-*** ** ********** ***** ******** in *** ***** *** ***** *****, China ********* ****** **** ************* ** their ****** ***** *** ********* ** the ***-*****. **** ********* *-***'* ***************, as ***** ********* ***** **** ******** sell **********, ******* ****** ** **** a *** ** *** ******* ** a ********* **** *-***.

Pressure **** *********** **** ***-**** *** ****** *********

***** **** *-***'* ********* ** ***** up ** ****** *** ****** **********, it *** **** ****** ** ******* from ******** **** ***-****, *** ****** companies **** ****. ** ****, **** Q-See ***** ******* *** ********, *-*** was **********, *** ***, ** ****, Wyze's ~$** ******* **** ********* *** providers **** *-***. ***** *-*** *** said **** ********** **** *********** ** ***** ******** service, **** ** ****** ** *** enough ****** **** *******.

Q-See's ***** *******

*-***'* ******** ****** *** ******* ** what ******* ** ****** ** *** products **** ****** ** ***** ********.

** *********-***'* ***** ************** ** ** ** ********** *** with ******** ***** **********.

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

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

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*** *** **** **** ****** **** makes ******* ********** ** *****:

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************, *-***'* **** ********* ** ******* by ***** ***, ** *** ******* for * ** ******* **** *-***:

*** ************** ** **** *********, *** effectiveness *** ******* **********, ***** ***** to *** **** ** *** ******'* Republic ** *****

** ***** ******** **** ********* *** * ****** video ************ *******.

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*** *-*** ***** ****** ** ********* antiquated (***** ** ******* ***), ****** certainly *** ********* ** *-*** (***** on *** ***** ** *******), *** connected ******* ** ***** (***** ** the **** **********).

** **** *****, *** **** ******* is *** ***** ******** ** ********* of ***** *** *** ** ********* on **** ******* ** ******* ***** surveillance *******.

Possibility ** ** **** ***?

***** ******* *** ******** ** ******* Q-See ***** ** **** *** ** another ******** ******** ** ** ** infrequent *** ********* ** ****** **** down. ***** *** ******* **** ***** in ********** **** * ******** ***** shut ****, **, *** *******, **** sold ***** ** *****. *-*** ******* are ***** ***** **** ** *******, Office *****, *** **** *****, ** it ***** ***** ** ***** *-*** product *** ***** *** *********** ** users. ******* *-*** ***** ***** *** customers ** *** *****. ** ******, IPVM **** *** **** *** **** state ** *-***'* ********** *** ********, which *** ****** ******* *-*** ***** be * ****** ** ********* ********.

Comments (10)

That is some fascinating data IPVM acquired pertaining to imported shipments. Are there other OEMs that are also showing significant drops in import pounds? Not certain if Q-SEE is an outlier or a sign of things to come.

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We can check particular companies if you or others are interested.

My main general concern is that import records are not guaranteed to be complete. There are different ways things can be shipped such that a decline may be a product of changing names or routing or techniques in importing.

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This is an interesting read.

I think the impact of ARLO on the traditional DIY Security market is probably the biggest factor. QSee peak revenue at $54m is less than what Arlo did in their 2nd year, 2015 Rev was approx $88m, 2016 up at $185m. For sure ARLO created a significant incremental market given the ease of installation / time to install, however it cannot be understated just how much QSee (and others) struggled to stop the erosion of their business from ARLO. Add in the later impact of the $20 Amazon cameras and this is the result.

Interestingly, that same cycle seems to be coming for ARLO now with the improvement of the low cost offerings, 2020 revenue trending to be down close to 30% vs their 2018 high despite 2020 being a SUPER HOT market for DIY surveillance.

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I think you're right that the proliferation of more advanced cameras like ARLO et al play a significant part in this.

I'm a quasi-professional in this industry. It's a side business, but when engaged we work to a high standard, having done a few commercial buildings and apartments.

With the latter, we had a client that we did work for at one building using professional equipment. We quoted another building of theirs with even better equipment at a price that was significantly less than they'd find anywhere else. They wasted our time with multiple quotes and site visits only to buy a handful of battery-powered ARLO-style cameras and then had the audacity to ask us to source plexiglass domes for them because they were being vandalized (we politely declined).

On the plus side, we did a quote years ago for a small commercial client who ended up going with a Costco-type kit. They approached us the other week with the possibility of seeking a quote for professional equipment because their kit wasn't meeting their needs. I had to stifle a laugh because I remember thinking that they'd be back once they realized the shortcomings of their frugality.

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Raj and his son are great guys. Sorry this did not work out for them.

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Sorry this did not work out for them

I don't know them nor their products... but an 18 year run seems to me like it worked out pretty good for them.

Nothing lasts forever.

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I think Raj intended to hand the business off to his son Rishi. Rishi is smart and was going to modernize things but I think it was just too late.

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In the end bad business habits will catch up to you if you don't pay attention. The years they were peaking you could do no wrong in the space. But their growth and others paved the way for the OEMs to transition. The fact they did not evolve their cloud to keep pace says it all. If management and ownership were smart they banked all the profits and are walking away in great shape, customers be damned. Sustainable businesses reinvest and evolve. Those that don't, dissolve.

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Arlo nor Wyze are considered competitors. Once Dahua purchased Lorex it was nail in the coffin for Q-See.

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Arlo nor Wyze are considered competitors

If Wyze is not a direct competitor, it is clearly a substitute, no? If you buy 3 or 4 Wyze cameras (for less than $100) why would you buy a Lorex or Q-See kit?

Q-See's struggles pre-date Dahua buying FLIR SMB / Lorex in 2019, as this post shows.

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