EZVIZ Cloud Storage and AI Algorithm Sub Diagram

Strengths

• Large hardware installed base provides ready-made entry points for subscription conversion.
• Deep accumulation of security algorithms enables sustainable increases in average revenue per user (ARPU) for AI value-added packages.

Weaknesses

• Domestic cloud subscription payment rates remain relatively low, relying heavily on subsidies for user acquisition.
• Hardware revenue still accounts for the majority, making the transformation pace both supported by and constrained by traditional hardware channels.

Opportunities

• Overseas markets exhibit strong willingness to pay for cloud subscriptions, yielding higher ARPU.
• New subscription spaces are opening up through AI scenarios such as elderly care and fall detection.

Threats

• Low-price hardware disruption from competitors like Xiaomi and TP-Link impacts the installed base.
• Regulatory risks regarding overseas data privacy compliance (such as GDPR).