This week, ADI Global Distribution, currently part of Resideo Technologies but soon to be split off as an independent company, has sent an email message to Control4 dealers reassuring them that nothing is going to change when the company goes independent from Resideo. The email to dealers, which has been viewed by Strata-gee, reassured dealers that ADI’s commitment to Contro4 is stronger than ever.
But, is it?
See more on ADI’s message to Control4 dealers…
I couldn’t help but notice that this email was sent only about a week and a half after the appearance of a Strata-gee story on reports from multiple sources that ADI was cutting staff across departments that included Control4. Perhaps this is why one dealer who sent me a copy of this new email from ADI suggested that perhaps the Strata-gee story had “struck a nerve” at ADI.
The company’s email was sent from a SnapOne email address purportedly penned by ADI’s Chief Operating Officer, Allie Copeland. The subject line was, “Our Commitment to the Control4 Ecosystem.”
An Important Question
The message starts by acknowledging that “…we know many Control4 dealers are asking an important question: What does this [becoming an independent company] mean for the future of the Control4 ecosystem?” Copeland helpfully answers the question with – in bold text – “The answer is simple: Our commitment to Control4 is stronger than ever.”
Control4 remains a strategic part of our business and an important driver of our growth. We believe the strength of the Control4 ecosystem comes from the expertise of our authorized dealers, the quality of experiences you deliver, and the innovation that powers it all. That foundation, and our commitment to it, is not changing.
ADI email to dealers – Dear ADI Control4 Customer
Addressing ‘Hot-Button’ Issues
Attempting to further assuage dealer concerns, Copeland made a concerted effort to address what she believes to be the hot-button issues for dealers. For example, she noted that “…Control4 will continue to operate as an authorized dealer-only brand. The integrity of this channel, the value it creates, and our commitment to this model will not change.” This issue of authorized dealers having to compete with unauthorized dealers is a touchy one for many, if not most, of the dealer base. Some of that concern came from the fact that it was ADI taking over Control4. As you know, ADI is a large global distributor, and many believe that it is usually distributors that are the source of sales to non-authorized dealers (known to some as “trunk-slammers).
The company also says that since taking over Control4, it has “…continued to invest in the Control4 ecosystem to help you differentiate your business and create value for your customers.” What investments are they referring to?
An excerpt from the ADI email to dealers
● Continued innovation across the Control4 platform, including significant improvements of the X4 Operating System, Lux Lighting, Vibrant Lighting, T5 In-Wall Touchscreens, and more
● Expanding recurring revenue opportunities through Control4 Connect and Assist, including the ability to upgrade from OS3 to X4 on the subscription platform
● Enhanced training and certification programs with Control4 Certified Technician (C4CT) Training to support your growth. We’ve also invested in the C4 certified showroom program with new C4Yourself programs coming later this year.
● Expanded ecosystem integration including Apple HomeKit functionality, Apple Music integration, Resideo thermostats and security panels, deeper voice integration, more. Control4 now integrates with over 35,000 third-party devices
ADI to Dealers: As a Separate Company, We’ll Be Better Positioned
The ADI email goes one step further, telling dealers that when the company breaks off from Resideo, “…we will be even better positioned to focus our investments on the technologies, services, and programs most important to our customers, including Control4.” Careful, ADI…you almost made Control4 seem like an afterthought there.
However, Copeland doesn’t say why that’s the case. As part of the combined Resideo, they were a bigger and more profitable company. Now, they are a smaller and less profitable one. In fact, their recently filed registration (for this split from Resideo) with the SEC, ADI’s pro forma results as an independent company show that they generated a net loss for two of the last three years. In fiscal 2025 alone, ADI had a net loss of $261 million on net revenues of $4.8 billion.
ADI Will Control Its Own Capital Allocation
Perhaps Copeland is suggesting that, in the past, Resideo made all the decisions on capital allocation for the entire company, and now ADI will make those decisions for itself. Hopefully, it’ll have the capital to allocate…and that it will decide to allocate it to Control4. Keep in mind, the company has other brands it’s responsible for as well.
Summing up her message, Copeland promised that, going forward, dealers can expect the following:
- Continued investment in the Control4 platform, experiences, and innovation roadmap
- Ongoing support for the authorized dealer model and the value it creates
- Expanded training, education, and certification opportunities
- Enhanced tools, services, and technical resources
- Greater alignment across products, platforms, and partner programs
That’s a lot of promises. Time will tell if the company lives up to its many commitments.
I’m More Concerned by What They Didn’t Address
But what has not been addressed by ADI’s email to Control4 dealers are the issues raised by the recent Strata-gee article. And for many dealers, those issues are troubling. First up, the company engaged in a round of layoffs – many, if not most, of them in the Control4 unit. So change has already come to Control4. Many dealers would like to understand why this change was made, what departments specifically were impacted, and what the impact of the layoffs will be on Control4 operations going forward.
Secondly, some sources have suggested that ADI management has no idea how to run a manufacturing company like Control4. While ADI’s memo promised continued investment in the Control4 ecosystem, do they truly understand the process of designing, engineering, and manufacturing a beloved industry brand?
Sources Say Control4 Product Quality is Declining
Finally, several former employees allege that the company has already seen a degradation in product quality, and they suggest that more product issues are likely to emerge in the future. Normally, in this type of situation, I’d chalk that up to possible “sour grapes,” but I heard it multiple times. ADI should address this critical issue. If there is any truth to it, then in the name of transparency, ADI should own up to past mistakes and explain what new processes are being put into place to further elevate product quality, not to mention advancing technical innovation.
As before, I again reached out to ADI through its public relations team with an invitation to comment and, once again, did not hear back from them by the time this story was posted.
For more information, visit adiglobaldistribution.us.
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