Ubiquiti Focusing on Inventory Optimization to Fuel Growth Engine

Ubiquiti Inc. UI has made significant investments to reduce lead times and optimize inventory levels, meet increasing demand and support the growing number of customers. The company’s effective management of its strong global network of more than 100 distributors and master resellers has improved its visibility for future demand as well as its inventory management techniques. Ubiquiti follows a scalable community-led approach based on product feedback from customers, while periodic reporting by channel partners has added to operational strength. We expect this resilient business model to contribute significantly to its growth momentum through disruptive price offerings. 

In addition, Ubiquiti spends significantly on research and development (R&D) activities for developing innovative products and state-of-the-art technology to expand its addressable market and stay on the cutting edge of networking technology. The company believes its new product pipeline will help it increase average selling prices for high-performance, best-value products, thus raising the top line. 

It upgraded the UniFi ecosystem, which includes hotspot analytics and high-density WLAN improvements, and added new features to the AmpliFi product family. The company’s product launches at disruptive prices helped it beat rivals to a great extent. Apart from introducing products, reducing labor-related costs also remains one of the chief highlights of the R&D initiatives. The company believes investments in R&D, inventory and operations management will help it expand the addressable market and maintain its dominant foothold in the industry.

Key Growth Drivers for UI

Ubiquiti offers a comprehensive portfolio of networking products and solutions. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing. Its enterprise product platforms provide wireless LAN infrastructure, video surveillance products and machine-to-machine communication components.

Backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals, referred to as the Ubiquiti Community, the company’s business model is highly flexible and adaptable to market demands. The company maintains a proprietary network communication platform that is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community. 

Ubiquiti aims to benefit from significant growth opportunities in both emerging and developed economies. These include relentless pursuit by emerging countries to stay connected with the world through the adoption of wireless networking infrastructure, as developed economies aim to bridge the demand-supply gap for higher bandwidth.

Other Firms Operating in This Space

InterDigital, Inc. IDCC is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. InterDigital designs and develops a whole range of advanced technology solutions for use in digital cellular as well as wireless 3G, 4G, and IEEE 802-related products and networks.

Arista Networks, Inc. ANET is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.

Qualcomm Incorporated QCOM is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. Qualcomm is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.

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