ADI W Box Accelerates Race To the Bottom

By: 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]

*** ** ************ ******* up ********* *** *** new ***** ***** ***** "W *** ************", *********** delivering************** ** ***** *** branch *******.

****** **** ****, ** examine * ***, *** emerging ** / ** / *** *********, *** it ** ***** ********** it *** *** ** will ********** *** **** to *** ******.

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

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

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

* *** [**** ** longer *********] ** ***'* new ******* ***** / house *****. *** ******* domain *** ******* ** 2014 *** ** ***** by ***'* ******, ********* (see ***** ***** ****** [link ** ****** *********]).

* *** ******* ** lower-end, ********* ******** *** includes * *-**** ******** [link ** ****** *********] on ***** ************ ******* and, ** ******, ****** purchasing / **** ** from ***.

**** *** **** *** months, *** *** ********* the ********* *** * Box, **** ** *-**** blast **** **** ******* Chinese **** ***** ******* for ****** *******, ** shown *****:

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

***** **** ****'* ********* and *** * *** website **** ***** ** analog ********, ***'* ******* is ******* * *** IP ** ******* *** NVR, *.*.:

*** ******* ** ***** devices *** ******* ** *** low-cost ********** ********* *** Hikvision / ***** *** devices ** *** $*** camera ***** *** *** $200 - $*** *** range. ******, * *** IP ******* ** ******* to*********'* *** *** ** analog*******.

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

***** *** ** ***** by *********, *** *** always **** / ****** Honeywell. *******, ***** ********* perceives ****** ** * high-end ********, ** ** riskier ** *** ****** on **** *****.

***** * ***, ***** ADI *** **** ******* super *** *******.

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

*******, *** ** ***** impacted ** *** ************* of **** ***-**** ******* and *** ******* ** purchase **** ******* ******. It ***** ******* ************* of *** **** ******** unless ** *** ******* to ***** *******.

* *** **** *** cut ****** **** *******, allowing ** ** ****** price ***** *** ******* low-cost ****** ****** **** beat ****** ******* **** ADI's *********** ******** ** local *****, ******** *** servicing.

Vicious *****

*************, **** ** ************ a vicious *****. *** ** not '****-***' *** ** certainly ** * *** higher *** **** *********** than ****** **** ******* Alibaba *******, **** ****** or ****** ****** ******. As *** ****** **$*** ** ************** **** ********** *** as **** ****** ****** them, ***'* * *** move ***** *** *** race ** *** ****** is ****** ********.

*** ** *** ***** up *** ***** ******* and ******** ** * Box ** ******, **** will **** ****** ************* who ****** ************* **********. In *** **** ***, this ** **** *** the ****** ** ** forces **** ************* ** innovate ***, ** *** meantime, ** ***** *** much ******* *** ***** surveillance ****** ** ******* in ****.

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

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.

Related Reports

Axis Discontinues Companion Hardware, Fully NDAA Compliant on Feb 03, 2020
Axis will be fully NDAA compliant, as the company has confirmed to IPVM it is...
The Insecure Verkada Access Control System on Jun 25, 2020
While Verkada touts the security of its system and that how their new door...
White House Proposes Blacklist of Dahua, Hikvision Users on Feb 04, 2020
The White House is proposing to blacklist Hikvision and Dahua users from...
PDQ Presents Cloud Mobile Access Smart Locks on May 04, 2020
PDQ presented its mobile, wireless access system 'pdqSmart' at the April 2020...
Wyze Fails To Deliver Own On-Board Analytics, Launches Novel Name Your Own Price Service on Jul 24, 2020
While Wyze failed to deliver their own onboard analytics to replace the...
Avigilon Now Available At ADI In EMEA, Not Americas on Jul 21, 2020
ADI, the home for Dahua and Hikvision flash sales, is now selling Motorola...
Qumulex Presents Unified VMS and Access Control on Jun 08, 2020
Qumulex presented its unified video management and access control system at...
Deep Sentinel Presents Crime Response For Business on Jun 11, 2020
Deep Sentinel presented its anti-intrusion and live response for home and...
JCI "Fever Camera" Partners With China TVT on May 19, 2020
Johnson Controls (JCI) is the next big player to get into the 'fever camera'...
Coronavirus Shuts Down ADT Door Knockers on Mar 26, 2020
Coronavirus has another victim - this time, alarm giant ADT has stopped all...
Startup Digeiz Reidentification Video Analytics Profile on Jul 20, 2020
French Start-Up Digeiz is marketing 'shopping centre analytics' with, most...
ISC West 2020 Moves To The Basement on May 29, 2020
The twice cancelled/postponed show will now not only be held in a different...
Ban Rules Released: Use Dahua or Hikvision, No US Government Contracts on Jul 13, 2020
The US government has released the rules implementing the "Prohibition on...
Sperry West / Alibaba Tablet Temperature Measurement Tested on Jul 07, 2020
In April, we ordered a ~$500 temperature tablet from Alibaba. We set it to...
Dormakaba Presents Switch Tech Smartlocks on May 01, 2020
Dormakaba presented its Switch Tech smartlock at the April 2020 IPVM New...

Recent Reports

Huawei HiSilicon Shortage Impacts Surveillance Manufacturers on Aug 14, 2020
Huawei acknowledged problems and challenges for its HiSilicon chip business,...
Final Rule Does Not Expand Hikvision Dahua Blacklist on Aug 14, 2020
The final White House rule (200.216) has been added and contrary to the...
Taiwan Lilin NDAA Compliant Cameras Tested on Aug 13, 2020
Taiwan-based manufacturer Lilin is taking direct aim at Dahua and Hikvision...
White House Expands Dahua Hikvision Blacklist To Federal Funding [Final Rule Reverses] on Aug 13, 2020
The White House is expanding the NDAA to blacklist anyone who "uses" banned...
Actual Coronavirus Testing Options Examined on Aug 13, 2020
Fever cameras have emerged as an indirect and flawed way to test for...
Video Analytics Online Show September 2020 Opened - Axis, Avigilon, Bosch, BriefCam, Genetec, Milestone + 30 More on Aug 12, 2020
IPVM's sixth online show will feature 35+ Video Analytics companies...
The German Company Powering Many China Temperature Tablets (Heimann) on Aug 12, 2020
Many fever tablet suppliers market German-made Heimann thermal sensors while...
Salesforce Drops Dahua and Hikvision on Aug 12, 2020
Salesforce has dropped Dahua and Hikvision as customers, forcing the two mega...
Access Control Course Fall 2020 - Register Now on Aug 12, 2020
IPVM offers the most comprehensive access control course in the industry....
Genetec CEO Declares "We Don't Negotiate Payment With Patent Trolls" on Aug 11, 2020
Are patent trolls like terrorists? Genetec's CEO is coming out strongly...
Hanwha AI Analytics Camera Tested on Aug 11, 2020
Hanwha has released their Wisenet P AI camera, adding person and vehicle...
Alabama Schools Million Dollar Hikvision Fever Camera Deal on Aug 11, 2020
The Baldwin County, Alabama public schools purchased a $1 million, 144-camera...
Dahua Taunts Australian Government, Continues To Sell Illegal Fever Cameras on Aug 10, 2020
Dahua is effectively taunting the Australian government by continuing to sell...
HID Releases VertX Replacement Aero on Aug 10, 2020
HID is replacing two established and broadly supported types of access...
NDAA Compliant Video Surveillance Whitelist on Aug 10, 2020
This report aggregates video surveillance products that manufacturers have...