Business updates from Wyze’s cofounders.
We’re going to be straight up with you about some bad news we got this week. Some of our key suppliers informed us they would only be able to supply about ⅓ of the chips we need to make Wyze Cams.
TL;DR: This means that over the next few months, several items will be in and out of stock including Wyze Cam v3. Cam Plus members will get priority access to inventory while we’re running low.
Right now, there is a global shortage on silicon. We will be disportionately affected by this because we are a low margin, high volume business. When materials are scarce, not only do manufacturing costs go up, but our sales volume is restricted so that we can’t cover our fixed costs.
We will get through this, just like we got through the worst of the coronavirus in 2020. But we will need your patience while we get creative over the next few months.
Here are some things that you can expect from us:
Services like Cam Plus will be getting a bigger emphasis.
Cam Plus subscriptions are more crucial than ever for us. They increase the value of each camera sale with recurring revenue and higher margins. When hardware sales are down, Cam Plus and other subscriptions can help make up the difference.
Earlier this week, we rolled out three new features for Cam Plus. These were Package Detection, Vehicle Detection, and exclusive pricing for Wyze products on wyze.com. Today, we are also adding inventory priority as a benefit when inventory is constrained.
With this new benefit, limited quantities of Wyze Cam v3 are now available to Cam Plus subscribers. We’ll open up orders to everyone as soon as we can build up enough inventory.
We’ll be launching more non-IoT products.
Our data and user research shows that high-quality tech products with Wyze pricing are still sought after by our users even when they aren’t WiFi-based. Our new handheld vacuum, for example, sold out of its initial shipment in just a few hours last Tuesday. We’re planning to introduce more products like this throughout the year.
We’ll stay true to our DNA.
Here’s what won’t change: Our commitment to offer our users high-quality products at the most affordable price possible.
We’re so grateful for a dedicated user base who has supported us through the ups and the downs of startup life. Entrepreneurship is hard. It comes with so many unexpected challenges. We will weather this storm like we have all the others for over 3 years now - together.
– Wyze Cofounders
Edit to add: Wyze Cam v3 can only be purchased through wyze.com and not the Wyze app for now.