ADI W Box Accelerates Race To the Bottom

Author: John Honovich, Published on May 22, 2015

ADI is aggressively ramping up promotion for its new white label brand "W Box Technologies", essentially delivering Alibaba pricing to local ADI branch shelves.

Inside this note, we examine W Box, its emerging IP / MP / NVR offerings, how it is being positioned it and how it will accelerate the race to the bottom.

[UPDATE: See ADI's W Box Test Results]

*** ** ************ ******* ** ********* *** *** *** ***** label ***** "* *** ************", *********** ************************ ** ***** *** ****** *******.

****** **** ****, ** ******* * ***, *** ******** ** / ** / *** *********, *** ** ** ***** ********** it *** *** ** **** ********** *** **** ** *** bottom.

[******: ******'* * *** **** *******]

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

W *** ********

* ***** ***'* *** ******* ***** / ***** *****. *** ******* domain *** ******* ** **** *** ** ***** ** ***'* parent, ********* (******** ***** ******).

* *** ******* ** *****-***, ********* ******** *** ******** * 5-year********** ***** ************ ******* ***, ** ******, ****** ********** / pick ** **** ***.

**** *** **** *** ******, *** *** ********* *** ********* for * ***, **** ** *-**** ***** **** **** ******* Chinese **** ***** ******* *** ****** *******, ** ***** *****:

W *** ** / ** / ***

***** **** ****'* ********* *** *** * *** ******* **** shows ** ****** ********, ***'* ******* ** ******* * *** IP ** ******* *** ***, *.*.:

*** ******* ** ***** ******* *** ******* ** *** ***-**** comparable ********* *** ********* / ***** *** ******* ** *** $100 ****** ***** *** *** $*** - $*** *** *****. Indeed, * *** ** ******* ** ******* ***********'* *** *** ** *************.

W *** ** *********

***** *** ** ***** ** *********, *** *** ****** **** / ****** *********. *******, ***** ********* ********* ****** ** * high-end ********, ** ** ******* ** *** ****** ** **** brand.

***** * ***, ***** *** *** **** ******* ***** *** pricing.

Competing ******* *** ***-***

*******, *** ** ***** ******** ** *** ************* ** **** low-cost ******* *** *** ******* ** ******** **** ******* ******. It ***** ******* ************* ** *** **** ******** ****** ** can ******* ** ***** *******.

* *** **** *** *** ****** **** *******, ******** ** to ****** ***** ***** *** ******* ***-**** ****** ****** **** beat ****** ******* **** ***'* *********** ******** ** ***** *****, stocking *** *********.

Vicious *****

*************, **** ** ************ * ******* *****. *** ** *** 'high-end' *** ** ********* ** * *** ****** *** **** established **** ****** **** ******* ******* *******, **** ****** ** random ****** ******. ** *** ****** **$*** ** ************** **** ********** *** ** **** ****** ****** ****, ***'* W *** **** ***** *** *** **** ** *** ****** is ****** ********.

*** ** *** ***** ** *** ***** ******* *** ******** of * *** ** ******, **** **** **** ****** ************* who ****** ************* **********. ** *** **** ***, **** ** good *** *** ****** ** ** ****** **** ************* ** innovate ***, ** *** ********, ** ***** *** **** ******* the ***** ************ ****** ** ******* ** ****.

[******: ******'* * *** **** *******]

Comments (7)

Integrators hate when distributors directly compete with them. I wonder how manufacturers feel?

It's not quite the same thing. Ultimately somebody other than ADI made these cameras, this is just a white-label scenario.

Any distributor already carriers competitive cameras, so some manufacturer is making money on this sale. In the case of selling direct NO integrators get money.

ADI might try to push their sales people to promote this stuff over more "reputable" products, but then again most manufacturers are not looking at the distributors as a legitmate lead source, just a fulfillment arm. If a customer/integrator calls up and really has no idea what they need/want or can be pursuaded to use this stuff, there is a high liklihood they'd be a hassle anyway.

If anything this is more of a concern to very basic/low-end manufacturers (eg: Speco), but I don't think it's a threat to "manufacturers" as an overall category.

"Most manufacturers are not looking at the distributors as a legitimate lead source, just a fulfillment arm."

I agree that many take this skeptical view, but some do hope that distributors recommend them business. Having a white label diminishes that as the profit pull for distributor sales people to push their own offering is greater.

"If anything this is more of a concern to very basic/low-end manufacturers (eg: Speco), but I don't think it's a threat to "manufacturers" as an overall category."

Agreed. The second tier manufacturers / those OEMing from China now are the likely to be hurt the most by this. But the more and more 'legitimate' sources endorsing / marketing $100 cameras, the harder it makes it for Avigilon, Axis, Bosch, Panasonic, Sony et al to sell similar cameras at $300.

As an integrator, no product that a distributer sells competes with me.

They provide products, I choose the right product for the project. Ultimately, if a client only wants the cheapest products... that's not a client most integrators want.

From experience, ADI is currently pushing this line hard in the local stores.

As you would expect for the low price, you get a sub-par product compared to other brands... even other low cost brands. So while all the Big Box stores (I consider ADI a contractor Big Box just like Home Depot) race to the bottom with chinese crap, any good integrartor knows this is just one of many other options. It might fit for a home owner friend that has a zero budget but wants anything that will send a picture. So in that case why not. In a commercial install I think not. At least that's my opinion.

I've got a lot of experience here from the manufacturer's side as well as the distributor side working with ADI and others. At the end of the day, reputable integrators -- i.e. the one's who typically sell reputable products at higher prices like Axis, Exacq, etc. -- already know what they want when they go to distribution. The dealers that look to distribution houses like ADI for product recommendations are usually more the trunk-slammer type, which weren't ever really going for anything other than the cheaper solutions in the first place. This will hurt brands like Speco, HIK, Vivotek, and the like because they are the ones playing in the cheap price market. Tier 1 brands like Axis, Sony, Arecont and even Samsung now (I know, it's debatable) won't really be hurt by this at all. Alarm dealers and eletrical contractors who don't know product will gravitate toward this, while legitimate integrators will continue to work with the manufacturers that they maintain strategic partnerships with.

Update: ADI has removed the W-Box IP cameras and NVRs. Not clear why they removed it over the Holiday weekend since the Friday publication of this article.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Most Recent Industry Reports

Exacq Raises VMS Software Pricing Twice in Less Than a Year on Feb 18, 2019
Most VMSes regularly release new features, but rarely increase their prices. For the 3rd time in 4 years, and 2nd time in 8 months, since being...
Axis IR Multi Imager Camera Tested (P3717-PLE) on Feb 18, 2019
Axis has released their first IR multi imager, the P3717-PLE, a repositionable model listing 360° IR illumination and flexible positioning,...
Ubiquiti Favorability Results 2019 on Feb 18, 2019
Ubiquiti has quietly grown into a $1+ billion annual revenue company, with offerings across wireless, wireline network and video surveillance (see...
Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Hikvision Chairman Praises United Front on Feb 14, 2019
Hikvision’s controlling shareholder held a meeting last month praising the United Front, a Communist Party organization known for its secretive...
Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
Cisco Meraki Cloud VMS/Cameras Tested on Feb 13, 2019
Cisco Meraki says their cameras "bring Meraki magic to the enterprise video security world". According to Meraki, their magic is their management...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact