Who Makes Arlo Security Cameras? The Surprising Truth Behind Your Home Security

Arlo security cameras are made by Arlo Companies Ltd. In 2018, Arlo has established itself as an independent manufacturer, selling over 10.2 million shares at $16 each during its initial public offering. Whether you’re considering investing in Arlo’s ecosystem or simply curious about the company behind your security cameras.

Arlo security cameras have become a powerhouse in smart home security, offering impressive features like 4K resolution and advanced night vision capabilities. While many of us trust these devices to protect our homes, questions often arise about who actually makes them and where they come from. In fact, since becoming a public company

The Birth of Arlo: From Netgear Division to Independent Company

Netgear’s venture into home security marked a significant milestone when they introduced their first wireless security camera system under the Arlo brand. Initially launched as a division of Netgear, Arlo quickly established itself through innovative products like the first 100% wireless WiFi security camera featuring crystal-clear HD video. The camera’s unique combination of easy installation, battery-operated design, and weatherproof construction eliminated common setup constraints, allowing users to place cameras anywhere without worrying about power outlets or cords.

Netgear’s Strategic Entry into Home Security (2014-2016)

Throughout 2016, Netgear expanded Arlo’s product lineup, introducing the Arlo Q 1080p HD Security Camera with Audio. This indoor camera brought advanced features including two-way audio communication, customizable alerts, and built-in night vision. Additionally, Netgear formed strategic partnerships to strengthen Arlo’s market position, notably integrating with Telguard’s HomeControl Flex™ platform to enhance professional monitoring capabilities.

The Initial Public Offering: Arlo Goes Public in 2018

On February 6, 2018, Netgear’s board unanimously approved the separation of its Arlo business. Subsequently, Arlo Technologies launched its initial public offering on August 3, 2018, with shares trading on the New York Stock Exchange under the symbol “ARLO”. The IPO consisted of 11,747,250 shares priced at $16.00 per share, including the underwriters’ full exercise of their option to purchase additional shares.

Following the IPO, Netgear maintained approximately 84.2% ownership of Arlo’s outstanding common stock, based on 74,247,250 total shares. The offering generated estimated net proceeds of $144.60 million for Arlo, with potential to reach $167.40 million if underwriters exercised their full purchase options.

The separation process culminated in December 2018 when Netgear completed the distribution of its remaining 62,500,000 Arlo shares to Netgear stockholders. This distribution took the form of a pro rata common stock dividend, with Netgear stockholders receiving 1.980295 shares of Arlo common stock for every share of Netgear common stock they held.

Key Figures Behind Arlo’s Formation and Growth

Matthew McRae spearheaded Arlo’s transformation as Chief Executive Officer, joining initially as Netgear’s senior vice president of strategy in October 2017. The company assembled a strong leadership team, including:

• Lily Knowles, who transitioned from VIZIO to become SVP of Sales, Marketing and Customer Care, bringing extensive experience in product marketing across multiple product lines
• Scott McManigal, appointed as SVP of Design and Experience in March 2018, previously serving as Vice President of Design at VIZIO where he directed creative vision for their entire product portfolio
• Antoinette Switzer, who joined as SVP of Worldwide Human Resources after serving as NETGEAR’s Vice President of Human Resources International

The IPO process involved several prominent financial institutions, with BofA Merrill Lynch, Deutsche Bank Securities, and Guggenheim Securities acting as lead book-running managers. Raymond James, Cowen, and Imperial Capital served as joint book-running managers, ensuring a smooth transition to public trading.

As part of the final separation process, Patrick C.S. Lo stepped down from Arlo’s board of directors, and the board size was reduced from seven to six members. This restructuring completed Arlo’s evolution from a Netgear division to an independent company focused on innovative smart home security solutions.

Arlo’s Current Ownership Structure: Who Owns Arlo Security Cameras Today

As a publicly traded company on the New York Stock Exchange (NYSE: ARLO), Arlo Technologies has established a robust ownership structure backed by major institutional investors. The company’s financial performance remains strong, with its annual recurring revenue (ARR) reaching $241.60 million, marking a 20.8% year-over-year growth.

Major Shareholders and Investors

Institutional ownership forms a significant portion of Arlo’s shareholding structure, with 89.91% of shares held by institutions. Among these, BlackRock Inc. stands as the largest institutional holder with 16.45 million shares, representing 16.06% of the company. The Vanguard Group follows as the second-largest shareholder, controlling 9.82 million shares or 9.59% of the company.

Other major institutional investors demonstrate considerable confidence in Arlo’s future:

• Brandes Investment Partners L.P. holds 5.73 million shares (5.60%)
• Primecap Management Company owns 4.63 million shares (4.52%)
• Wasatch Advisors LP maintains 4.54 million shares (4.43%)

The company’s insider ownership stands at 4.04%, altogether creating a strong foundation of stakeholder confidence. Moreover, the total number of institutions holding shares has reached 291, underscoring broad institutional interest in Arlo’s growth potential.

Corporate Headquarters and Leadership Team

Arlo maintains dual headquarters, operating from both Carlsbad, California, and San Jose, California. The company’s official SEC filing address is registered at 2200 FARADAY AVE. SUITE 150 CARLSBAD CALIFORNIA, 92008.

Under the leadership of CEO Matthew McRae, Arlo has assembled an experienced executive team:

Kurt Binder serves as both Chief Financial Officer and Chief Operating Officer, bringing valuable experience from his previous roles at CalAmp Corp. and VIZIO. The recent appointment of Samir Kapoor as Chief Technology Officer in March 2024 strengthens the company’s technical leadership. Kapoor’s background includes executive positions at Fitbit and Life360, bringing crucial expertise in hardware, software, and SaaS technology.

The leadership structure also encompasses:

• Brian Busse as General Counsel, overseeing worldwide litigation and intellectual property matters
• Lily Knowles as Senior Vice President of Sales, Marketing and Customer Care
• Scott McManigal as Senior Vice President of Design and Experience
• Michael A. Werdann as Chief Revenue Officer

This experienced management team has guided Arlo to impressive financial results, with the company reporting 4.24 million cumulative paid accounts. Furthermore, Arlo maintains a strong financial position with cash and cash equivalents, alongside short-term investments, totaling $146.60 million.

The company’s commitment to innovation and customer service has resulted in consistent growth. Through its cloud-based platform services, Arlo has expanded its reach across multiple regions, including the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The leadership team’s focus on operational excellence has yielded positive results, evidenced by the non-GAAP service gross margin of 77%.

The combination of strong institutional backing, experienced leadership, and solid financial performance positions Arlo as a leading player in the smart home security market. The company continues to build on its foundation of innovative technology and customer-focused solutions, maintaining its competitive edge in the rapidly evolving security camera industry.

Where Are Arlo Cameras Made?

Behind every Arlo security camera lies a sophisticated manufacturing network that spans multiple continents. Through strategic partnerships with industry giants Foxconn and Pegatron, Arlo has established a robust production system that maintains high-quality standards while meeting growing market demands.

Primary Manufacturing Facilities and Locations

Unlike many competitors who rely heavily on Chinese manufacturing, Arlo takes a different approach to production. The company’s manufacturing strategy involves careful selection of production facilities outside China, ensuring greater control over supply chain security and quality standards. Through partnerships with Foxconn and Pegatron, Arlo maintains strict oversight of manufacturing processes while leveraging these companies’ extensive experience in electronics production.

The company’s headquarters in Milpitas, California, serves as the central hub for product design and development, though the actual manufacturing occurs at partner facilities. This arrangement allows Arlo to focus on innovation and product development while relying on established manufacturing expertise for production.

Component Sourcing Strategy

Arlo implements a comprehensive approach to component sourcing that emphasizes ethical practices and supply chain transparency. The company’s commitment to responsible sourcing extends particularly to minerals used in their products, as evidenced by their support of Section 1502 of the Dodd-Frank Act. This legislation aims to prevent the use of conflict minerals from The Democratic Republic of the Congo and neighboring countries.

The sourcing process involves:

• Rigorous supplier evaluation and periodic audits to ensure compliance with Arlo’s Supplier Code of Conduct
• Detailed tracking of mineral origins throughout the supply chain
• Regular assessment of suppliers’ labor practices and environmental standards
• Continuous monitoring of component quality and reliability

Quality Control Processes Across Manufacturing Sites

Quality assurance at Arlo operates through a multi-layered system that begins at the component level and extends through final assembly. The company maintains dedicated quality engineering teams that oversee:

1. Factory QA processes
2. RMA (Return Merchandise Authorization) procedures
3. RGM test protocols
4. Product failure mode analysis

The quality control system incorporates several key elements that ensure consistent product performance. Quality engineers conduct regular in-market product inspections and testing, working closely with internal teams and suppliers to address any findings. This approach helps maintain Arlo’s reputation for reliability in the competitive smart home security market.

Arlo’s commitment to quality extends beyond mere product testing. The company enforces strict environmental and social responsibility standards across its manufacturing network. Manufacturing facilities must comply with all relevant regulations, customer specifications, and environmental legislation. This comprehensive approach to quality control helps ensure that every Arlo camera meets the company’s exacting standards for performance and reliability.

The manufacturing process benefits from Arlo’s deep expertise in product design, wireless connectivity, and RF engineering. These capabilities enable the company to maintain tight control over product quality despite relying on manufacturing partners. Through regular audits and continuous monitoring, Arlo ensures that all manufacturing locations maintain consistent quality standards.

The company’s quality assurance program particularly emphasizes customer feedback integration. Quality engineers actively participate in failure analysis investigations with customers, internal teams, and suppliers to drive timely resolutions to any issues that arise. This customer-centric approach to quality control helps Arlo maintain its position as a market leader in smart home security cameras.

Is Arlo an American Company? Understanding Corporate Identity

In the complex landscape of global business, determining a company’s true nationality extends beyond its headquarters location. For Arlo Technologies, this question carries particular significance as the company balances its American heritage with international operations.

Defining Corporate Nationality in a Global Economy

The concept of corporate nationality has evolved significantly in recent years. Rather than becoming stateless entities, as some predicted, companies often maintain stronger ties to their home countries. This holds especially true for technology companies like Arlo, where intellectual property, research and development, and strategic decision-making remain anchored in their country of origin.

Corporate citizenship encompasses several key elements that define a company’s national identity:

• Legal incorporation and regulatory compliance
• Location of primary operations and decision-making
• Distribution of workforce and resources
• Market focus and revenue sources
• Adherence to national laws and trade restrictions

In Arlo’s case, these elements paint a clear picture of its American identity. The company operates under U.S. federal laws and maintains strict compliance with American trade regulations. This commitment extends to their business practices, as evidenced by their adherence to U.S. export controls and embargo restrictions affecting countries such as Belarus, Cuba, Iran, North Korea, Russia, Sudan, Syria, and parts of Ukraine.

Arlo’s American Roots vs. International Operations

Headquartered in Carlsbad, California, Arlo Technologies demonstrates strong American roots through several key aspects of its operations. The company’s primary listing on the New York Stock Exchange (NYSE: ARLO) and its incorporation under U.S. law in 2018 further cement its American identity. Nevertheless, Arlo maintains a global presence through strategically positioned offices worldwide.

The company’s operational footprint spans multiple continents with significant facilities in:

• United States: Primary operations in Carlsbad and San Jose, California, focusing on research, development, and executive leadership
• Australia: Regional headquarters in Chatswood, managing Asia-Pacific operations
• Canada: Richmond office supporting North American market expansion
• India: Bengaluru facility specializing in software development and engineering

Although Arlo generates substantial revenue from international markets, the United States remains its primary source of income. This revenue distribution underscores the company’s American identity while highlighting its success in global markets. The company’s cloud-based platform services extend across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions.

Arlo’s commitment to American values manifests in its approach to product development and security. The company has invested continuously in AI and CV-powered security technologies for over a decade, maintaining its research and development centers primarily within the United States. This strategic decision ensures that core technological innovations remain under U.S. oversight while benefiting from global talent and resources.

The company’s corporate citizenship extends beyond mere geographical presence. Arlo demonstrates its American corporate values through:

• Strict adherence to U.S. privacy standards and data protection regulations
• Investment in American innovation and technology development
• Commitment to U.S. employment and economic growth
• Compliance with American corporate governance standards

Significantly, Arlo’s product development strategy reflects its American identity while acknowledging global market requirements. For instance, their cameras maintain consistent hardware specifications worldwide, with regional variations limited primarily to power adapters and subscription services. This approach ensures product uniformity while respecting local regulatory requirements and consumer needs.

Arlo’s Product Development Process: From Design to Doorstep

Innovation drives Arlo’s product development cycle, with the company investing heavily in artificial intelligence and computer vision technologies over the past decade. At the heart of this process lies a commitment to creating security solutions that seamlessly integrate into users’ daily lives.

Research and Development Centers

The cornerstone of Arlo’s innovation strategy centers around its advanced research facilities, where teams focus on developing cutting-edge AI-powered security technologies. These facilities spearhead the development of sophisticated features like computer vision AI and recognition engines that enable faster, more informed security decisions.

The company’s R&D efforts have yielded impressive results through:

• AI-assisted motion detection systems
• Indoor/outdoor video monitoring capabilities
• Professional monitoring with video verification

Most recently, Arlo formed a strategic partnership with Origin AI, securing exclusive worldwide rights to market groundbreaking AI products that detect human presence through radio frequency signals. This collaboration exemplifies Arlo’s commitment to expanding its technological capabilities through strategic partnerships.

How Manufacturing Locations Influence Product Features

Manufacturing decisions directly shape Arlo’s product capabilities. The company’s deep expertise in AI-powered analytics, cloud services, and wireless connectivity enables the creation of security devices that offer superior performance. Each manufacturing facility maintains strict quality control processes, ensuring consistent product quality across all production lines.

Key product features influenced by manufacturing locations include:

• Wireless connectivity options (2.4GHz/5GHz)
• Maximum streaming resolution capabilities up to 4K
• Local storage compatibility with various microSD formats

Distribution Network and Global Reach

Arlo’s distribution strategy encompasses a comprehensive network that ensures product availability across multiple regions. The company’s cloud-based platform provides users with real-time access to their security devices from any location with WiFi or cellular connectivity.

The distribution system supports various product categories:

• Wire-free security cameras
• Smart WiFi and LTE-enabled devices
• Video doorbells
• Floodlight systems

Through strategic partnerships, Arlo has expanded its market presence considerably. The company recently strengthened its alliance with Samsung SmartThings, introducing enhanced capabilities like two-way audio communication and AI-powered object detection. This collaboration demonstrates Arlo’s commitment to creating interoperable security solutions that work seamlessly within broader smart home ecosystems.

Quality assurance remains paramount throughout the distribution process. Before reaching consumers, products undergo rigorous testing protocols to ensure they meet Arlo’s exacting standards. Internal quality assurance teams conduct thorough evaluations, identifying and addressing potential issues before products reach the market.

The company’s customer-centric approach extends beyond product development to after-sales support. Arlo maintains a comprehensive customer portal that enables users to manage their devices, access training materials, and handle administrative tasks independently. This self-service capability streamlines the user experience while reducing operational overhead for the company.

How Arlo Compares to Other Security Camera Manufacturers

Examining the competitive landscape of security camera manufacturers reveals distinct patterns in ownership, manufacturing, and market positioning. Arlo stands out among its peers through several key differentiators that shape its market presence.

Ownership Structures of Major Competitors

The security camera industry features diverse ownership models, ranging from public companies to privately held enterprises. Arlo’s position as a publicly traded entity on the NYSE sets it apart, with institutional investors holding 89.91% of shares. This ownership structure contrasts with competitors like Ring, which operates as a subsidiary of Amazon, and privately held companies such as Lorex.

BlackRock Inc. maintains the largest institutional stake in Arlo at 16.06%, alongside other major shareholders including The Vanguard Group at 9.59%. This robust institutional backing provides Arlo with stable financial support for continued innovation and market expansion.

Manufacturing Locations Across the Industry

Manufacturing strategies vary considerably among security camera producers. Most major U.S. manufacturers subcontract with Chinese companies, primarily ‘The Big Two’ – Hikvision and Dahua, which produce approximately 90% of IP cameras globally. However, recent shifts in manufacturing locations reflect changing industry dynamics:

• Bosch operates production facilities in North Carolina, maintaining American-made security cameras
• Mobotix concentrates manufacturing in Germany, establishing a strong European presence
• Several manufacturers are exploring production facilities in Texas, Arizona, and other U.S. locations

The industry witnessed a significant transformation after China’s Made in China 2025 policy implementation in 2015. This initiative aimed to centralize electronics manufacturing in China through government subsidies and incentives. Consequently, many U.S. manufacturers relocated their production overseas due to cost advantages and lack of comparable domestic support programs.

Market Position and Brand Reputation

Arlo has secured a distinctive position in the smart home security segment through its technological capabilities and service offerings. The company recently earned recognition as No. 14 on the 2024 Newsweek Excellence 1000 Index, emerging as the only smart home security brand in the IoT category to rank within the top 100.

The company’s market strength stems from several core competencies:

• Deep expertise in product design and wireless connectivity
• Advanced cloud infrastructure capabilities
• Cutting-edge AI technology implementation

Regarding pricing and value proposition, Arlo positions itself in the mid-range market segment. Their wireless security cameras typically cost between $125.00 and $450.00, with the Essential Spotlight Camera starting at $129.99 and the Ultra 2 Camera priced at $299.99.

Service offerings likewise demonstrate Arlo’s competitive positioning. The company provides three subscription tiers:

• Secure: Starting at $4.99 monthly
• Secure Plus: $17.99 monthly
• Safe & Secure Pro: $24.99 monthly

These plans compare favorably with industry standards, considering the average monthly cost for professional monitoring ranges from $20.00 to $30.00. Arlo differentiates itself by offering self-monitoring options, providing greater flexibility compared to competitors like Frontpoint that require professional monitoring.

The company’s commitment to data privacy further enhances its market position. Unlike some competitors, Arlo maintains strict policies against monetizing personal data and implements enhanced controls for user information. This dedication to privacy protection, combined with continuous innovation in AI-driven features, has helped establish Arlo as a trusted brand in home security solutions.

Conclusion

Looking back at Arlo’s journey, their transformation from a Netgear division to an independent powerhouse stands as a testament to smart business strategy. Their decision to maintain American roots while building global operations proves particularly noteworthy, especially considering how many competitors have fully outsourced their operations to China.

The company’s focus on innovation through AI and computer vision technology sets them apart in the competitive security camera market. BlackRock and Vanguard’s significant investments, alongside other major institutional backing, demonstrate strong market confidence in Arlo’s direction. Their manufacturing partnerships with industry giants Foxconn and Pegatron ensure reliable production without compromising quality standards.

My analysis reveals Arlo as a uniquely positioned player in the smart home security space. Their mid-range pricing strategy, combined with flexible subscription options, makes their products accessible while maintaining premium features. The recent recognition on Newsweek’s Excellence 1000 Index reinforces their standing as a leading innovator in IoT security solutions.