Surging Wyze Raises $20 Million, Threat To Chinese Brands

By John Honovich, Published Feb 01, 2019, 07:35am EST

Image result for wyze camera

The Seattle Startup that is disrupting consumer IP cameras with $20 pricing has just raised $20 million dollars (SEC Filing and company press release).

This is bad news for Chinese brands like Dahua, Hikvision, and Xiaomi that have been working for years to succeed in the fast-growing consumer security and security market.

Inside this note, we examine:

  • Why Wyze is succeeding
  • The company’s growth rate
  • Market valuation
  • Expansion plans
  • Dropcam comparison
  • Wyze vs Chinese brands
  • Wyze vs Amazon / Nest / Ring
  • Potential SMB / Commercial Impact
  • Risks for Wyze

Why **********

**** ********* **** ** buy ***** ****** *** they **** **** ***** of ********* ** ********** that *** ******* ** not ***** ** *** them ***. ****’* ******** are ****** ********** - low-end ******* ******** - but **** *********** ********** by ********* **** ******** with ****** ******** ********* and ***** *******.

** *** ********* ****, the $** ******** ***** was ** ********* ********* move. **** ******* ****** (like ********* *****) **** $60 ******* *** ** Western ********* ***** ***** $20 ****. ** **** Wyze ******* **** ** mid-2017, **** ******** ** avalanche ** ******** ***** from ****** **** ********** publications **** ******** *** offering, *** *** *** cost ** * ** firm *** *********** *****-**** profits. ******, ****’* *** recent ******** ****** **** 50% ** ***** ****** found **** ******* ***** publications. ********** ******** **** marketing ***** **** **** millions, ******.

***** ***** ********** *** $20 ******* ******* ***** a ***** ** ***** marketing ***** / ************:

Company ****** ****

*** ************* *** **** *.* million ***** ** *** first ** ******. ** the **** * ******, including *** ********* *******, Wyze *** **** ***,*** units (*********** **** ** their******* **, **** * million **** ************). **** ******* **** VC *******, *** ******* was ** **** *** 3+ ******* ***** **** for ****.

** ******** ***** **** revenue *** $** - $30 *******, ***** ** units **** *** ***** pricing. ***** ******* ******* price ** ************* **** low *** ***** ****** rate ** **** **** and ***** **** ********* are ******* **********.

Market *********

*** *******’* ****** ********* in **** ******* ***** is ~$*** ******* ***** on ******’* ******* ****(“***** * $*** ******* ******* ** just *** ****”) *** the **** ** ******* multiples ****** *** **** growth ********.

Expansion *****

*** ******* **** **** will *** *** $** million ******* *** - emphasis *****:

  • “‘* **** ****** ****wyze ******** **** *** **** ******** seamlessly’
  • “**** ********** ** ********** and **********smart **** ********
  • “*** **** ********** ** smart **** ******* ***********” [******** *****]
  • “********* **outdoor ******

Dropcam **********

**** **** *******, **** has *** **** ******** of * ******** ***** surveillance ******* ***** *******. There *** *********.

******* **** ** ****** to *** ******** ** cameras, **** **** ** ODMing / ******* **** cube ******* (* *** cost ****** *** **** era) *** ****** ** their *** *********, ************ and *******. ***, **** started **** ****** / reusing ***** **** ******* (the ****** **** ****** option) *** ****** ** a ******* *********** ** value ***** ********.

**** *** **** ** competitors *** **** ******* all *** *** ****** way **** ********* ** have *** ***** ***** recognition / *****.

*** *** ***** ******** technology ********* ******* *** was ***** ***-********* ****** access *** ****** ******** and ** ********* ************** back **** *** ****’* is ****** ******* ** many ** ***** ***********.

Wyze ** ******* ******

***** **** ***** *** products ** ‘*****’, **** are ***. **** *** Chinese ******** ** *******, their ******** *** ********, at ****. *******, ******* image ******* *** ****** so ****, **** ** frequently ‘**** ******’.

*** ******* *** *** Chinese ** **** **** are ****** *** ** building ******* ****** *** to *** ****** **** can, **** **** ** spend **** ** ********. By ********, **** *** built ****** ***** *** distribution **** *********** ********* means.

** ********, ********* *** already ***** ******** ******** its ***** *****, **** in ***** *******, *** their ***** ** ********* and **** **** ** momentum. ** ** *** clear **** **** ***** cost *********** ** ** match **** **** ** doing.

***-**** ******** *** *** best **** *** ******* brands *** **** ** disrupting *** ******* **** on * ********* **** will ** **** *** them ** *****.

Wyze ** ****** / **** / ****

****** **** *** **** optimistic ****** ** *** they *** ********** ******* companies **** ******, ****, Nest, ***. ****’* ******** are *** ****** ***** companies *********. **** ***** ‘dumb’ (** *** ***** of ** **** *********), simple ******* ***** ***** Western *********** ***** *** more ************* ********.

*******, ** **** *******, we ***** ****** **** to ******* ******* *******, doorbell *******, ***** ***** analytics, ******* * **** intrusion ******, ***. ***, to *** ****** **** do, **** *** ***** encroaching ** *** ***** end ** ***** ***** companies. ** *** ***** ****, from * ******** *** distribution **********, ***** ********* may ****** **** ** advantage.

** *****, **** ******, is **** ** *** next * *****, **** can ******** ****** ** an ********** ****** ******** with *** ********* ** be ******** ** * billion **** *******.

Potential *** / ********** ******

** ****’* *** ******* declarations, **** **** ** intention ** ***** **** the *** *** ********** markets. **** ****** ***** sense, ***** *** ***** the ******** ****** ** by ****** *** *** many **** ************* *** commercial ****** **.

*******, ***** ***** ** some ******* ** ****** felt ********* ** *** scalable ****’* ******** ********** becomes. **** ****** **** factor ******* *** ********** capabilities, **** ***** *********** find *** ** *** 4 - * ****** SMB ******. ***, ***** this ** **** ***** Series *, * ********* $50 ******* ****** * in **** ***** ******* them **** ********** ** expand ***** ****** ******.

Risks *** ****

*** **** **** *** Wyze ** **** ***** companies *** ***** ** ramp ** ********* *** $20 ** *******. *** Wyze *** *** ********* of ***** **** *****, their ********** **** ********* already *** *** **** that *** ******** ** ‘next’ ****** **** ***** will *** *** * fraction ** *** **** marketing **** **** *** (since ** ** **** newsworthy) *** **** ********* in **** ********* **** be ***** ******** **** selling ******** ** **** low **** *** *** margin.

******* * ****** **** is * **** ** gross ****** ******* ** this ****. *****, ** course, **** **** *** they **** **** *** to ***** ****** ** new ********* ** ******* their *********. *** **** they *** ** **** that *** *** **** constraints **** **** (*.*., Chinese ** ****** ******** $20 *******) **** ** key ** *** ******** the ******* ********** *******.

Comments (15)

I bought one of these to test out (because of the price, what do you have to lose). Its been a solid performer. No disconnectivity issues at all.

Sounds like a pretty stressful road selling ultra low margin products with regards to cash flow. They are selling millions of units and yet still they got to a point where they had 4 months to survive and one of the investors had to put up his house for a homec loan just to get by. Scary.

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Sounds like a pretty stressful road selling ultra low margin products with regards to cash flow.

Lol, that's good marketing on their part. They make it seem like they are a couple of guys in their basement. However, this is a sophisticated strategy to do an Amazon-style play in IoT. They are aiming for a billion dollar company in a few years. It may not work but it's obvious that they are aiming for that type of scale.

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I bought this to test for a client who had a specific criteria and so far I like it.  Very clear video and for the costs, well worth it.  I've only had about a month so only time will tell.

The "menu/settings" are user friendly... I'll test another 5 months and at that point will be able to either recommend or not.  Its been extremely stable with no disconnection issues and no connection issues remotely as it handles pretty smoothly.  I like it!

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On the marketing side, the $20 starting point was an excellent marketing move. Many Chinese brands (like Hikvision Ezviz) sell $60 cameras...

I’m not seeing $20 Wyze cameras (on Amazon, at least) anymore.  And Ezviz is selling $30 cameras, (though 720p vs 1080p):

btw, did you notice the description:

“EZVIZ - The Sub Brand of Choice!”  ;)

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u can get it for 19.99 on wyze's website. 

The $30 ezviz camera just breaks the bank. Thats an absurd amount of money

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u can get it for 19.99 on wyze's website.

u can, but the real price is still the same:

Amazon offers free shipping on the Wyze and EZVIZ cameras.

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what a ripoff

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I am stuck in a time storm and can not get mine hooked up for testing. How much for an MSRP Genetec single IP camera license? (Om-E-1C)  $250?  /lol

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the axis dome vainly offers its interoperability,

to the room of devices both deaf and proprietary,

it broadcasts its packets of TCP and UDP,

only to be lost in the sea of ubiquiti 

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I agree, only the lanyard matters.

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Hey John where can I get some IPVM merch?

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get in line, I’m still waiting for mine :)

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I am ashamed of myself, but I purchased a WYZE Cam Pan to place into my Mom's new assisted living apartment.  3rd parties make an adapter so you can plug it into an outlet and set the camera in a bracket.  GUI (android) is fairly decent.  Had to do some googleing on how to set a "Home" position, but with the vertical  lens reach, SD card and motion triggers with push notifications, it let's me keep track of Mom (and whoever else) comes and goes.  Can't beat it for the price.

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Image result for xiaomi xiaofang

 

What about Xiaomi Xiaofang ?

https://www.gearbest.com/ip-cameras/pp_487830.html

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Peter, to the best of our information, and as claimed by Wyze, Wyze is not OEMing from Xiaomi. They are obviously using the same form factor but the software and production are done separately. We analyzed that here - Wyze Explosive Growth Disrupting Consumer IP Camera Market

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