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Camera Sales: GoPro sales are in free fall
  • Action camera maker GoPro released first quarter 2016 earnings. Numbers aren’t pretty. Last year company posted adjusted revenue of over $363 million and a profit. This year revenue came in at only $184 million with a loss of $0.63 per share.

    Even worse, GoPro was expected to try to boost sales with by releasing a new consumer drone product in the first half of 2016. Now it’s delayed until the holiday season.

  • 20 Replies sorted by
  • The market is saturated. Everyone who wants a GoPro has one. They could come out with a MFT version with interchangeable lenses and get all of us. But consumers in general? Doubtful.

  • The market is saturated. Everyone who wants a GoPro has one

    Yes and no. Actual main reason here is cheap Chinese alternatives, many of them are rebranded by big chains and sold under different names.

    It is also very normal as rate of profit in this market had been astonishing, and due to capitalism laws big money went into this and thus made rate of profit around average for market.

    They could come out with a MFT version with interchangeable lenses and get all of us.

    As I know some Chinese guys are working on similar things, just give them time.

  • Supposedly the Hero 5 will be using the Ambarella H1 SOC which has both a 4K30P 10 bit HEVC pipeline and 4K60P 8 bit H.264 recording mode. This could potentially leave GoPro vulnerable to a Chinese manufacturer releasing a camera at the same or lower cost with the better spec H2 chip that does even higher frame rates in 4K. It will be interesting to see how this plays out. Rumors indicate the Hero 5 will be released earlier (this summer now) in an attempt to help placate wallstreet.

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  • Smart phone cameras have come a long way in the last few years, this also eats into GoPro sales.

  • @kurth

    It has nothing to do with GoPro, we have separate topic about it.

  • @vitaliy ...where ? I think you're mistaken. It was mentioned in the nab thread, and your news feed, but no separate topic.

    As I know some Chinese guys are working on similar things, just give them time.

    also has nothing to do with gopro !

  • perfectly calm, but that topic was on their first camera. And all threads have a certain organic flow that always exceeds their expectations.

  • perfectly calm, but that topic was on their first camera.

    It was, but last post was about item you referenced, with same video. Title actually do not have any specific camera model, just 4K and manufacturer, both fit.

  • Q3 looks really bad too... and it seems unlikely based on reviews that Karma is going to be the device to pull them out of their tailspin in Q4.

    Expectations were incredibly low for GoPro this go around and yet somehow the company managed to out do even analyst’s worst fears. The company’s stock trading was halted prior to releasing results that missed revenue expectations by 23 percent and nearly $75 million. When trading began again shares were down 22 percent. This means that in a matter of minutes the market cap of the company melted from $1.23 billion to $972 million — the spontaneous combustion of roughly $250 million in market value.

    https://techcrunch.com/2016/11/03/gopro-trading-halted-as-company-misses-revenue-expectations-by-23/

  • @eatstoomuchjam

    I added citation.

    It is very good read for Japanese guys. GoPro also told everyone that action cameras are the future and no one can compete with them. Wrong on both points.

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    Not so bad in big scale.

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  • Has the action camera market been growing, or has it been tanking with the rest of the camera market?

    In other words, how much of GoPro's troubles are due to competition, and how much is due to weakness in the camera market overall?

  • While overall demand for action cams may have shrunk, the real issue for GoPro is that in a two-year period they did nothing to innovate. The Hero 5 adds nothing in terms of video quality over the Hero 4 - no stabilization in 4K, no 4K 60P, no HEVC. The video/audio quality is exactly the same (including the same bad low-light performance and lousy audio) as the former model, except, following Apple, there is no longer a standard analog mic input. After two years! Basically they added 4K to the Hero 4 Silver. So, no one who bought an older GoPro has any compelling reason to buy the new model. In the meantime there are from-nowhere Chinese firms making cameras just as good as the GoPro (no better unfortunately) that are cheaper.

    Is this true of other manufacturers? No, Sony's action cam added an amazing feature - BOSS stabilization in 4K and 1080 120p. They also fixed design and menu shortcomings. No 4K60p, but still a model arguably worth upgrading to.

  • @markr041

    It can be that not only them who are at fault.

    They rely on Ambarella, and, despite announcement, I do not see any actual product of new chips. Can be that they are unable to supply them or they have serious bugs and GoPro had been forced to use that they had.

  • I think you are correct. But innovation should have been more than waiting for someone else to improve the chip - interchangeable lenses, power zoom, optical stabilization, an iris, something we can't think of. Basically, they acted like any Chinese knock-off manufacturer just buying parts. They spent all their R&D efforts on the drone, which turned out to be behind the technology frontier. Another Flip camera company?

    My bet is that Ambarella could not solve the overheating problem that plagues all really small cameras even at 4K30p - GoPro Hero 4 Black, Sony X3000 and X1000, Kodak 360 4K, Samsung Gear 360, Sony RX100 IV and V, etc., not to mention some big cell phones...And, there is the issue of the storage media for 4K60p, or the necessity of going to HEVC, which appears to be problematical.

  • But innovation should have been more than waiting for someone else to improve the chip - interchangeable lenses, power zoom, optical stabilization, an iris, something we can't think of. Basically, they acted like any Chinese knock-off manufacturer just buying parts.

    You mean that Apple is knockoff manufacturer? As they, for example, as also waiting for parts, sometimes long time like for OLED screens.

  • No manufacturer makes all the parts of a complex electronic device, or car or whatever. GoPro is like a knock-off not because they use parts made by others but because they didn't innovate - they just copied (themselves) and lowered the price, just like knock-off manufacturers do. Apple tries to innovate (style and function), though they have not been doing very well lately at that. Sony innovates in cameras, a lot, whatever one may think of their image quality or menu ease or their strategic feature restrictions across models. Panasonic too is innovating, or at least adding features that are important (IBIS), if not cutting edge. The GH4 was a breakthrough camera, And the GH5... Unfortunately, quality and innovation do not always succeed - Samsung cameras, for example. In a centrally planned, socialist country maybe that exit wouldn't have happened...

  • The reduction in operating expenses is achieved with a combination of cuts to program costs, headcount and open positions, totaling the elimination of approximately 270 positions. GoPro estimates that it will incur total aggregate charges of up to $10 million for the restructuring, which are primarily cash expenditures related to severance costs. The Company expects to recognize the restructuring charges in the first quarter of 2017.

    http://investor.gopro.com/press-releases/press-release-details/2017/GoPro-Affirms-Q1-2017-Revenue-At-The-High-End-Of-The-Guidance-Range-And-Targets-Full-Year-Non-GAAP-Profitability-For-2017/default.aspx