GoPro is expanding beyond the consumer action camera segment via new licensing deal

[Shawn Knight]

GoPro on Thursday announced a licensing deal with US-based manufacturing services company Jabil. As per the agreement, Jabil will have access to GoPro’s reference designs and IP to produce sensor modules and camera lenses for use in various GoPro-approved third-party products and solutions. Financial terms of the multi-year deal were not shared.

Irv Stein, Jabil's vice president of Jabil Optics, said early market feedback indicates strong demand for applications in smart homes, fire, police, rescue, military and security settings.

GoPro has catered exclusively to the consumer action camera segment up to this point but the past few years haven’t been kind to the company. The camera maker debuted on the stock market in mid-2014 and found early success, topping out at a value of around $87 per share by October. Aside from a brief rally in mid-2015, however, it’s been all downhill since.

Shares are currently down 2.44 percent and trading at just $4.80.

GoPro and Jabil have a longstanding relationship but today’s deal marks the first time GoPro is allowing another company to build products using its components. By moving into the enterprise action camera market, GoPro opens the door for increased revenues but it could very well be too late to recover the sinking ship.

Notably, new products using GoPro components and IP will not carry the GoPro branding.

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https://www.techspot.com/news/73837-gopro-expanding-beyond-consumer-action-camera-segment-new.html

 

[David from LA]

I m glad they are doing something... their stock is killing me. At some point, these guys are gonna be an acquisition target.

 

[Uncle Al]

They already are but if I read it correctly they are still a "little" cash rich from earlier sales and can hold out longer. They have made the first right move, now let's hope they make a few more, especially for the sake of you poor stock owners that have taken one heck of a beating!

 

[fastvince]

Their products have always been way over priced. You can buy clones that do the same thing for next to nothing.

GOPRO , you want to survive - LOWER YOUR PRICES.

 

[Burty117]

Their products have always been way over priced. You can buy clones that do the same thing for next to nothing.

As someone who goes Skiing every year and there is a fair few of us in a group, we tend to have lots of different brands, Go Pro's still easily have the best image quality.They're more expensive because they are the higher quality choice.

This year we had a Sony (less than a year old), Contour (3 years old) and a Go Pro Hero 5 Black (year old?). Guess which one had, by miles, the better image quality?

 

[fastvince]

Their products have always been way over priced. You can buy clones that do the same thing for next to nothing.

As someone who goes Skiing every year and there is a fair few of us in a group, we tend to have lots of different brands, Go Pro's still easily have the best image quality.They're more expensive because they are the higher quality choice.

This year we had a Sony (less than a year old), Contour (3 years old) and a Go Pro Hero 5 Black (year old?). Guess which one had, by miles, the better image quality?

ummm....I know people who had both on a recent camping trip. We weren't seeing that much difference in the quality.

 

[Burty117]

ummm....I know people who had both on a recent camping trip. We weren't seeing that much difference in the quality.

But there is a difference, don't get me wrong, the Sony was quite close, but that's why they can charge more. If you want the best, you have to pay for it.

I do still think they are a tad too expensive, competition caught up quite quickly so they should be a hundred quid less or so, but still more than the rest.

 

[fastvince]

ummm....I know people who had both on a recent camping trip. We weren't seeing that much difference in the quality.

But there is a difference, don't get me wrong, the Sony was quite close, but that's why they can charge more. If you want the best, you have to pay for it.

I do still think they are a tad too expensive, competition caught up quite quickly so they should be a hundred quid less or so, but still more than the rest.

Yep ..very true. I think they were the first to appear on the market, so maybe they could justify charging more back then. But as you say, when the competition caught up, they never really adjusted their prices.

I hope they can turn things around, they do have a quality product.