Kill yourself! GoPro entering the drone market defeated Dajiang
Before that, Dajiang wanted to cooperate with the two. The DJI UAV was equipped with Gopro's sports camera, which was rejected by Gopro arrogantly. Now it seems that it is dead.
Beijing time on December 2, according to foreign media reports, as a company established because of hobbies, GoPro's development track is indeed somewhat unusual. GoPro enters the public through a variety of extreme sports videos, but the company's CEO who loves extreme sports is not willing to be a sports camera manufacturer, but whether it is involved in the entertainment industry or to do drones, this manufacturer has never broken itself. The ceiling will eventually have to lay off employees and protect themselves.
On September 19 this year, GoPro CEO Woodman stood on the stage with confidence and released the long-awaited new hardware. The first product is an upgrade to a regular sports camera. This time, the GoPro Hero 5 can be waterproof without a waterproof case, and it also adds anti-shake function. However, the GoPro revival ambition is actually the second product, it is Karma drone.
Drone that assists opponents
Although the Karma drone is GoPro's first drone product, its philosophy is very advanced. In addition to its compact and portable body, it also features a detachable stable pan/tilt system that allows users to capture stable images while not using drones. If you don't want to use a handheld stabilizer, the front-end GoPro camera can be removed and used directly. Given the vast user base of the GoPro sports camera, Karma is definitely a super product. The price of the product came out, and the leader of the drone market, Dajiang, also set a lower starting price for its Mavic drone. However, a good show that is about to be staged has come to an abrupt end.
Karma sold for only 16 days and GoPro's disaster came. This product bombing accident continued, GoPro had to issue a recall order. And similar to Samsung Note7, once this dangerous product is recalled, it will be difficult to say whether it will be sold again in the future. GoPro also missed the important Christmas shopping season. At the same time, the recall also made Davic of Dajiang the best financial product of the year, and its terminal sales price has risen all the way.
However, Karma's fall is actually just one of a series of problems GoPro faces.
Sports camera is not good to sell
GoPro was founded in 2002. The company started to introduce sports cameras in 2004. With the advancement of technology, GoPro has become smaller and more powerful, and with its rich accessories, it has become the limit. The favorite of sports enthusiasts, even NASA sent it to space. After 2010, GoPro began to sprung up. After one year, its revenue surged from $64 million to $234 million. Subsequently, this number increased year by year, reaching $1.4 billion in 2014. The founder became a billionaire, and he was under 40.
However, the growth of GoPro alone is difficult to sustain. After all, the camera is now able to support 4K video, and the users who have purchased the upgrade are not strong. As a result, the company's revenue growth fell from 250% in 2011 to 16% last year.
Most importantly, GoPro has always been in a relatively niche market, with potential users mostly being sports enthusiasts, while ordinary users tend to use mobile phones to solve video shooting problems.
The entertainment department is simply "Yang Bailao"
In addition, GoPro's entertainment department has become a big burden, and the department that was established in 2015 will be shut down in the future.
Although GoPro has always wanted to make money from content, in fact, these contents do not belong to them at all. GoPro is just a "big V" on major social networking sites. Users just look at the video, they have no habit of uploading.
The company’s cash flow is tight
In 2016, GoPro also encountered money problems. In November of this year, its cash flow was only $132 million, which was directly less than half of the beginning of this year. At the same time, GoPro has been losing money for the past four quarters, and its share price has even fallen below $10. When the company was in the limelight in 2014, the share price once reached $87.
As an extreme sports enthusiast, the favorite early adopter is the gene that CEO Woodman is born with, but I am afraid that a series of previous attempts is the main reason for forcing GoPro to lay off employees. For the current GoPro, it is probably the most sensible choice to focus on the old line.
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