Now that the dust has settled from the new announcements of the last month, we can better understand the impact on the overall video surveillance market.
Activity was fairly low and unimpressive. This is, by far, the worst recent turnout (compare to our review of Spring 2011, Fall 2010 and Spring 2010 results).
By contrast to the previous few year's sweeping megapixel product introductions and declining prices, this quarter's announcements show no huge shifts. The new announcements this Fall were scattered and mostly incremental improvements.
While we did not see any major trend shifts, a few interesting ones look to be emerging:
Winner - 'Super Sized' megapixel cameras: Buyers like big numbers and manufacturers are responding with quite a number of new 10MP+ cameras such as Arecont's 20MP SurroundView, Avigilon's 29MP HD Pro camera, Dallmeier's 51MP Panomera and ipConfigure's Gigapixel camera.
Loser - Cash crunched companies: The slowing overall economy and increased investor fears are starting to cause issues for surveillance companies especially those struggling with profitability. We believe this is what happening with recent cutbacks/changes for Cisco, GVI, IQinVision and Pivot3. Certainly, there are others facing similar risks that will shortly surface as well.
Loser - AVHS Partners: The old guard integrators (ADT, Navco, Niscayah, etc.) seem to be flooding toward's Axis's AVHS hosted video program despite weak ROI, a crippled product and re-selling of the same damn thing. This is a desperate move that is likely to end badly.
More Winners and Losers
Inside the Pro section, we will examine more winners and losers in detail taking a look at the following companies:
- Arecont Vision
- HDcctv Alliance
For each company, we will explain how they are trending and what is driving their advances or declines.