Amazon Acquires Camera Maker’s Chip Technology For $90 Million
Amazon has reportedly acquired home security cameras maker “Blink” in order to get the hold on their chip technology at the end of last year. Amazon acquires this Chip Technology for roughly $90 Million, the company has secretly acquired the startup’s energy-efficient chip technology according to the people familiar with the matter who informed Reuters.
Some analysts argue that Amazon has acquired this technology in order to produce another popular camera for the market, but others say Amazon has other motives than only producing cameras, Amazon is actually aiming at increasing efficiency and lowering costs. Blink chip technology could significantly reduce the production costs, increase the battery life of the gadgets the company produces and potentially improve the device’s efficiency. Amazon’s Cloud Cam and Echo Speakers could be benefitted from this—said an analyst.
It is quite impressing that Blink claims, the company said their cameras could last for two years on a single pair of AA batteries. Amazon’s intention is quite clear for this deal, the company definitely wants to supercharge its range of gadgets that could revolutionize them. However, Amazon declined to comment of the terms of the deal and the future strategy.
The deal got little attention in December when Amazon announced to introduce Amazon Key, a program in which smart lock and surveillance camera is set up to deliver the goods when they are away. Amazon also has an opportunity in security cameras market as smart home technology becomes popular.
According to Scott Jacobson, former Amazon devices manager said, “Battery life is a big issue in connected devices.”, “Cameras that are on-always for months and do not require a wired connection would be game-changing.”
As Blink’s sales increased on Amazon platform, the company started thinking about making a deal with Blink. The chips can provide Amazon with other advantages as well, the proprietary chip design will make it harder for other rivals to copy the company’s devices according to Matt Crowley CEO of Vesper, sensor and semiconductor company. And not Amazon owns the chips cutting the middleman who produces the chip for its devices he added.
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