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DJI Dà-Jigng Innovations

Company

Transport
Since 2006
China


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Chinese producer of drones
10-20 employees in 2010
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Performance Indicators

2017: Growth of revenue by 80% to 18 billion yuans

In 2017 sales of DJI made 18 billion yuans (about $2.7 billion on weighted average rate for 2017) that is 80% more than an indicator of year prescription.

History

2019

State agencies of the USA increased purchases of drones of the Chinese DJI by 500%

On July 11, 2019 it became known that the American state bodies actively increase purchases of DJI drones, despite publicly stated concerns concerning safety of use of the equipment from the Chinese companies.

At the technology RISE 2019 conference in Hong Kong the director of strategic partnership of DJI Jan Gasparic told that from 2015 to 2018 deliveries of drones to the American departments which are responsible for protection of public security increased by 500%.

The USA increases purchases of DJI drones, despite fear of data transmission to China
The USA increases purchases of DJI drones, despite fear of data transmission to China
«
The reason of such growth rates is that this technology has a progressive impact on a work type which they execute — he said.
»

In May, 2019 the CNN TV channel published warning the U.S. Department of Homeland Security that the American companies "need to be careful" if their data from unmanned aerial vehicles "are stored at the producer or other third parties".

The American federal agency on cyber security (Cybersecurity and Infrastructure Security Agency) created in 2018 in structure of the Ministry of national security of the USA stated that drones bear "potential risks for data which the organizations use".

Though specific names of UAV producers were not mentioned in warning, it was obvious that first of all DJI means. This company controls about 80% of the North American market of drones (Skylogic Research).

Reported to CNN that according to the American intelligence agencies, drones of the Chinese production transfer confidential information on users to developers, and those give it to the Chinese authorities.  Against the background of these concerns and domination of DJI in the USA rumors about sanctions against the Chinese vendor and possible restriction of sales of drones in the country even more often appear.[1]

MVB of the USA: Drones can pose a threat for the American companies

On May 21, 2019 it became known that the drones made in China can send important data to producers to China which, in turn, can transfer these data to the government. Such warning released the U.S. Department of Homeland Security.

Thus, experts of the Agency entering into MVB in cyber security and security of infrastructure claim, use of the Chinese drones threatens the American companies and the organizations. These devices allegedly "contain components which can compromise your data and place your information on servers, access to which someone has in addition to manufacturing company".

Though specific brands of multikopter are not specified in the document, 80% of sales of such devices in the USA and Canada are the share of products of the Chinese DJI. At the same time both law enforcement agencies of the USA (especially local police), and the companies servicing infrastructure facilities even more often rely on drones in the work.

Considering the continuing trade war between the USA and China and also the entered prohibition on cooperation of the American companies with the Chinese Huawei, the edition does not exclude that DJI can fall the following victim of the conflict. In the 2017th drones of the Chinese producer were already prohibited to be used the American[2].

Construction of the new headquarters

By the beginning of February, 2019 of DJI whose products are on sale more than in 100 countries builds the new headquarters and for this project invited the known British architectural studio Foster and Partners. The company which initially was the university project has 14 thousand employees and 17 offices worldwide.

Unlike many Chinese technology companies, DJI does not make the device on the basis of others constructions, does not borrow technology someone, and itself is an innovator in the market of the UAV. For the merits the company christened "Apple among drones".

In the territory of DJI headquarters
In the territory of DJI headquarters

The founder of DJI Wang Tao very seldom speaks at public actions and gives an interview of media.

«
Wang Tao since the childhood was fond of helicopters. He very reserved also prefers to be concentrated on products — the representative of DJI Natasha Gray at the beginning of February, 2019 told the South China Morning Post edition.
»

Emphasis on the corporate sector

In January South China Morning Post wrote that DJI is in the lead in the market of commercial unmanned aerial vehicles, controlling about 70% of sales. The volume of the world market of drones is estimated at $9 billion, and more than 50 percent share is the share of a segment of industrial equipment.

According to the partnership development manager in DJI Bill Chen, the company stakes on the corporate sector and, in particular, on clients from the agricultural industry. As the population continues to grow in the world, we should find more high-tech methods of satisfaction of the growing demand for food, Chen noted.

Losses in $150 million because of rollbacks to employees

On January 18, 2019 it became known that the world's largest producer of the consumer DJI Technology unmanned aerial vehicles revealed several cases of internal corruption. Because of bribes the company did not get more than 1 billion yuans ($150 million). The company detected violations during regular checks and transferred information to the authorities.

In 2018 in the company there took place internal management reform. The main objective consisted in understanding internal processes and also to replace some leading posts. It was found out that in a decision making chain about the choice of suppliers cases of bribery of staff of department of research and development and purchasing department and quality control took place. The staff of sales department, administration and an after-sale service were also convicted of use of official position for personal reasons.

DJI did not get in 2018 $150 million because of rollbacks to the employees
DJI did not get in 2018 $150 million because of rollbacks to the employees

For the beginning of 2019 the total quantity of employees in DJI Technology makes about 14,000 people. 45 people are suspected of corruption and crimes of official. Among them — 26 employees participated in decision making concerning supply and 19 people were engaged in sales, administration, design and production. The cases of 16 people were submitted court, and 29 employees were dismissed at once.

In 2018 because of corruption in a supply chain average purchase price exceeded the allowed level more than for 20%. Many inexpensive materials were on sale at the price 2-3 times higher market. The price of expensive products was overstated 20-50%. Representatives of the company reported that, according to the most conservative estimates, losses from the elicited facts of corruption are more than 1 billion yuans. This digit more than twice exceeds profit for the end of 2017. At the same time in the company said that scales of corruption it is much more, than it was expected, and it is only an iceberg top. It is supposed that more than 100 people will be involved and that losses can exceed the amount designated earlier.[3][4]

2018: Sale of drones of the American police

At the beginning of June, 2018 it became known that the American police began to buy from DJI company unmanned aerial vehicles (UAVs) with video surveillance function. The project under the name Axon Air is implemented together with the producer of Axon stun guns.

At the first stage of police of the USA the professional DJI Matrice 210 drone which cost begins with $8 thousand will be delivered. Also the consumer DJI Phantom 4 Pro UAV with the price label in $1300 will be purchased.

As notes the The Verge edition, partnership with Axon is profitable to all participants. So, drones can be useful to police officers in search and rescue transactions, and old cooperation of Axon with law enforcement agencies (buy from the producer guns with the paralyzing electroshock and breast cameras) will allow DJI to use this developed channel for sales of UAVs.

DJI Phantom drone
DJI Phantom drone

Law enforcement officers use drones to be engaged in search and rescue of people, to recreate car accidents, for example, for permission of disputable situations at road accident, to watch  big accumulations of people. Besides, it is possible to perform pursuits, to carry out monitoring of buildings, to analyze places of crimes and  to perform collecting of proofs using new technologies.

The equipment of DJI will be connected to a cloud data management system of Evidence.com on which videos from cameras of UAVs will arrive. Automobile and breast video recorders of police officers are connected to the same service, and the general audience exceeds 200 thousand people who are engaged in security of the population.

In the press release it is noted that by June, 2018 thanks to drones about 130 people are saved worldwide, and this digit continues to increase. In the USA more than 900 state institutions protecting public order use such aircraft.[5]

2013-2015: Sales of the first inexpensive drones

Attempts of improvement of devices and reduction in cost of an end product during the period by 2013 led to emergence of more mass models of DJI drones (cost less than $800) that caused mass demand, unexpected for the founder of the company, for them and led to sharp sales increase including among not specialists, but the people who are simply wishing to purchase "the flying camera". The company put emphasis on ease of use and controls of drones, and it predetermined mass demand.

DJI drone
DJI drone

In 2013 the company provided flagman model of the quadcopter Phantom on the market, and in the 2014th about 400 thousand copies of this product were sold.

In a conversation with Forbes in 2015 the founder of DJI Wang Tao explained the success with what it is simple more smart than others and tries "keep at from crowd".

2010: The first serial controllers

The first serial controllers by means of which drones could fly along the route set on the card using satellite navigation and return to a take-off point, were released by DJI company in 2010. Then they cost very much — about $10 thousand. At that time in DJI about 10-20 people worked.

2006: Foundation of DJI

The DJI company is founded in 2006 by the student of faculty of electronic engineering  of the Hong Kong university  of science and technologies  Wang Tao. Living in the hostel, he made experiments and experiment with assembly of prototypes of unmanned aerial vehicles which bore a faint resemblance to future DJI devices.

Since the childhood Wang Tao was fond of aviamodelling and dreamed of own "aviafairy"  — the device which will be able to fly and everywhere to film the events with the camera. Hobby for drones led to creation of the first prototypes which Wang Tao sold for 6 thousand to the companies, making experiments with UAVs.

Wang Tao founded the company together with Colin Gvinn, professor of robotics Li Tszesyan and schoolmates Liu Dee and Svift Tszyase.

Wang Tao not really well studied at school because he devoted to aircraft much time. Because of bad notes he was not taken in the Massachusetts Institute of Technology and Stanford University.

Notes