Struggling Speco OEMs Dahua

Published Jan 31, 2017 16:37 PM

Many incumbent manufacturers have been hard hit by the expansion of Chinese manufacturers.

Once fairly large US provider Speco has been one of them.

Now, Speco has begun OEMing some Dahua products, confirmed by IPVM testing. In this note, we examine the challenges for Speco and 3 reasons why OEMing from Dahua is a bad idea.

OEMing ************

** ****** ****** ********* ****** **, ********* ** *** a ***** ***.

*** ***** ***** ***** ** ** a ***** ***** ** *** ***** configuration ****:

*** ***** *****'* *** ********* ****** the ***** *** *********:

*** ***** ***** ***** ** ***** as * ***** ******:

*** ********* **** ***** *** **** some ******** **** ** *** ** to *** ***** *** *** ********* and **-***** ***** ************* ******. *******, such ******** ******* ** ****** ** obscure *** *******'* *******. ******,** **** ****** ******* **** ********* just ** ******* ** *****'* ******* (***** ******** **** *************).

Speco **** *** ********

*****'* *** **** ** **** **** would *** ******** *** **** *** from ** ******* ** ****** **** Dahua, ******:

** ** ** ***** ** ********, I **** ***** ****** *********** **** anyone ******* ** ***** ***** ** sources ** **** ***** ** ******* different *** ******* ** ******** * make ** ***. ** ******** ** this **** *** ******.

*************, ***** **** *******. ** ** even ** ***** *** *********** * company's ******* *** ****** ********** ** extremely ****. **** *** **** ** the ******** *** *** ****** ** Chinese ****** ***** *****, **** ****** works ******. *** ******* ***** ***** it **** **** ******.

#1 - ***** ******** ****** *****

***** ***** ******** *** ** ****** known *** **** ****** ****** ******* have ****, ** ** **** ****** for **** ** ***** / ******* Speco ****** **** *** **** *****. This ** * *** ******** ** OEMing * ****-**** *****, ***** ****** can **** **** ****** ****** ** and *** '*** *** ***'* * just *** **** *** ************?" ***** leads **...

#2 - ***** *********** ***** ***** ********

***** *** ******* **** ~** ** employees *** *** *** **** ** the ****** ** ***** **** ******* that *** *****. ** ***** ** different ** ****** **** ***** *** using ***** *** ***** *** **** to ***. *** ******* ** **** Dahua ** **** ** *** ** the ** *** *** ******** ***** Dahua *** ***** **** ** ****** for Speco's ********.

#3 - ***** *** **** ** ****

***** ***** ******* ***** ***** *** OEM ***** *** ********* ************* ** the ***** **** *** ** ******* nor ********* ***** ***** ***** *** customers. ******, *** ********* **** ***** are ***** ******* *** *** ***** local ***** ***** ******* ** * dealer ** ******* ***** *****, ***** local *** **** ** *** ***** lower ****** *** *** '****' *****.

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

****** ***** **** * ********, ***** has * **** ***** ******** ******, Dahua's ******** **** * ************** ** *** ******* ***** ******, ********** **** **** ********** ************.

Outlook *****

*** **** ** *** **** ***** has **** ******* ** ***** ****** in *** **** **** *** **** historically **** ****** *** *** *** from ***** ** **** ****** *** minor. ***** ***** **** **** ****, we ****** ****.

*** ** ***** ********* ** * path ** ****** **** *****, **** risk ****** ****** **** ***** *** **********. Negativity **** ***** **** *** ************ ** common *** ******. ***** **** **** to ** ********* ** ******* ** the **** ** *** ****** *** partnering **** ***** ** *** **.

Comments (20)
UM
Undisclosed Manufacturer #1
Jan 31, 2017

Wondering if they just copied Dahua's datasheet or actually verified themselves (3rd party lab) that this camera is in fact IP67 rated (submersible down to 3ft). I used to have a lot of respect for Speco. They were a worthy competitor in the analog days. Things have changed a lot. It's unfortunate

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UI
Undisclosed Integrator #2
Jan 31, 2017

CEO Says "I have never shared information with anyone outside of Speco about my sources or what makes my company different and special on anything i make or buy." 

Maybe that's why Speco is not doing so well. If you don't promote what makes you special or different outside your own company why would anyone decide to buy from you outside your company? 

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MF
Michael Fusco
Jan 31, 2017

Why bother? why not just sell the company to Dahua? 

JH
John Honovich
Jan 31, 2017
IPVM

why not just sell the company to Dahua? 

Michael, would Dahua buy Speco?

It seems the cheaper move is to let Dahua sell Speco products and than use their USA sales team to take over Speco dealer by dealer. Yes/no?

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MF
Michael Fusco
Jan 31, 2017

John, I suppose so - I guess it depends on what Dahua's motivation/plan is - is it to gain maximum market share under its own brand, or is it to sell the maximum number of cameras, regardless of whether it is under its own branding or as an OEM..

I would tend to think that this trend of OEM'ing Hikvision and Dahua is creating an alarming lack of differentiation among so many once-leading brand names and that is a silver lining for companies like Axis who do all their own R&D and manufacturing..more and more distance is being put between them and the gaggle of re-branded Chinese cameras all competing on price only. 

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JH
John Honovich
Jan 31, 2017
IPVM

this trend of OEM'ing Hikvision and Dahua is creating an alarming lack of differentiation among so many once-leading brand names and that is a silver lining for companies like Axis

Yes, strongly agree with you on that. It is not great for Axis but it's a lot less terrible than it is for Nuvico, Everfocus, Speco, etc.

Axis is challenged to grow revenue but the older names / budget companies have seen revenue drop ~50%, which is far worse.

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Avatar
Jon Dillabaugh
Jan 31, 2017
Pro Focus LLC

What I find ironic is that Dahua uses the Axis API for their products. Whether that is official/licensed or not, I don't know. All I do know is that Axis software will identify and control Dahua cameras if allowed, due to the common API. If you look at the file structure of a Dahua camera, there is even an Axis folder.

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Avatar
Michael Archer
Feb 01, 2017

Would you need a license to copy a API! Assume there is no patent elements made by Axis. And you got to be sure they don't pay Axis anything what so ever. 

Could you say the same thing for all those Onvif cameras which don't pay membership fee, but just have the protocol on device.

I'm not saying it's right. But we are in an Industry which had not protected itself in many ways.

Avatar
Jon Dillabaugh
Feb 02, 2017
Pro Focus LLC

I hear what you're saying, but I am the wrong person to ask about whether or not it is required to license API.

JH
John Honovich
Feb 02, 2017
IPVM

Could you say the same thing for all those Onvif cameras which don't pay membership fee, but just have the protocol on device.

The ONVIF element is trademark infringement since companies need to get permission to use ONVIF's mark in their commercial advertising. Now whether ONVIF would actually enforce it is another story.

CB
Cullen Brannan
Feb 02, 2017

I doubt Axis would even bother trying to patent an API since the entire purpose of the Application Programming Interface is to make it open to work with other companies software. That is just my option though. 

Link to the VAPIX description

 

U
Undisclosed #4
Jan 31, 2017

Same argument can be made about Speco as, say, Digital Watchdog, who has also been approaching everyone for a buyout these last few years, which is, what is there to buy, other than the name?  A customer list?  

Hell, why write a check, OEM for them instead.  Get their customers acclimated to your products, Speco tanks, now the OEM reaps the benefits, all the while taking money in, but never sending money out.  

This all seems too frighteningly logical.

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UI
Undisclosed Integrator #5
Feb 02, 2017

Digital Watchdog, who has also been approaching everyone for a buyout these last few years

Can you confirm that they are looking to sell to someone?

 

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U
Undisclosed #4
Feb 02, 2017

I sure can.  This arose in May of 2015, and again in February of 2016.  

Once more, what is there to buy, other than a customer list?

U
Undisclosed #3
Jan 31, 2017
IPVMU Certified

why not just sell the company to Dahua?

Because its more profitable to first entice Speco into a dependent relationship, which can then be abandoned once Speco's customer's become aware of the true origin of the product.

 

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UD
Undisclosed Distributor #6
Feb 03, 2017

The Chinese don't buy companies, not over here anyway. They just cut your throat by selling for 10% less than you just to take your customers.

U
Undisclosed #3
Jan 31, 2017
IPVMU Certified

This is one popular camera model:

 

Even in the press ;)

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JH
John Honovich
Jan 31, 2017
IPVM

Lol, that's funny. Actually I gave our graphics person a link to a different dome design / camera but he must have googled it and picked that one to emulate / design. 

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JS
Jack Sink
Jan 31, 2017
IPVMU Certified

Speco at one time had only a portion of their products offering allocated to video, the balance devoted to commercial audio products. They've maintained that to date so it makes sense in some ways to OEM their video products with the advent of low cost Asian video lines. Choosing with whom to ally and avoiding those that tend to eat their own may get really interesting especially in this case.

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MC
Marty Calhoun
Feb 01, 2017
IPVMU Certified

Speco's CEO is a bit behind the times.

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