Rough quarter for GoPro leads company to slash camera line-up

By Scorpus ยท 8 replies
Feb 3, 2016
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  1. GoPro is finding itself in a spot of bother: pretty much everyone who wants one of the company's action cameras already has one, and there's little incentive at the moment to upgrade to a new or higher end model.

    This problem has led to a pretty rough fourth quarter of 2015, with the company posting $436.6 million in revenue for a net loss of $34.5 million. Compared to the same quarter in 2014, GoPro's revenues are down 31 percent, and a sizable $122 million profit has turned into a loss.

    GoPro did manage to make more money in the entirety of 2015 compared to the year prior, taking in $1.62 billion versus $1.39 billion in 2014, however profits dipped by more than 70%. Things aren't going to get any better soon either, as the company has advised investors that they expect to make just $1.35 to $1.5 billion this year.

    CEO Nick Woodman has announced that GoPro will be slashing its camera line-up to just three models in 2016: the Hero 4 Black, Hero 4 Silver, and Hero 4 Session, which occupy price points from $499.99 through to $199.99. Non-Hero 4 products, including the Hero+ LCD, Hero+ and entry-level Hero, will be discontinued entirely.

    The changes will come into effect in April, with the company confirmed to be launching a new Hero 5 flagship later this year, along with their 4K-recording Karma drone.

    Image courtesy of Gizmodo

    Permalink to story.

  2. Adhmuz

    Adhmuz TechSpot Paladin Posts: 1,828   +633

    This comes as no surprise, they had the market by the balls, now the market has exploded and naturally the ultra expensive GoPros become overlooked. Instead you can get a comparable device, albeit without the refinement, for half the price. I myself purchased a competing brand's device, the JVC Adixxion, only because it featured a screen for reviewing and aiming the camera, something that is very handy and I couldn't of imagined not having that ability when I purchased it back when it was released years ago. Today it's a different story altogether with the likes of the Asian online super retailers with offerings around the $100 mark for a device that's more than suitable for most users.

    Where GoPro goes from here is anybodies guess, if they can't retain the market share they once had it's only a matter of time before they get phased out entirely, which would be devastating to the film and production industry, these little cameras have changed the way the world can be viewed. We have GoPro to thank for this, something many people will likely overlook with time.
    Reehahs likes this.
  3. Burty117

    Burty117 TechSpot Chancellor Posts: 3,146   +911

    This sort of makes me happy, they'll be stock they will want to get rid of, slashing prices and I can pick one up :)
  4. captaincranky

    captaincranky TechSpot Addict Posts: 13,005   +2,532

    Well, the "Wham-O" corporation survived, (more or less), after the "Hula-Hoop" went out of style.

    It may come to pass as you suggest, that "Go Pro" will become a smaller specialty supplier for the likes of the movie industry. I imagine they'll have to stay on their toes and continue innovating, if the expect to keep that market as well.
  5. p51d007

    p51d007 TS Evangelist Posts: 1,310   +651

    When you are the "first", the world beats a path to your door.
    Xerox, IBM, Apple, GoPro.
    Once the market is saturated, or (in the case of Xerox/IBM) you sit back and rest on your
    past glory, other companies, eager to make a buck, will pass you so fast it will make your
    head spin. Apple, to some extent, in that problem now. Pretty much NOTHING has changed
    since the first smart phone 9 years ago. They are all candy bar devices. Yeah, they've improved
    the screens, processors, memory, camera etc, but other than some goofy gimmicks, have they
    really evolved.
    Same with "go pro"....they need to evolve to stay on top.
  6. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 8,647   +3,274

    Hula-hoop? We're probably only two people on these forums who knows what the hell you're talking about :D
  7. captaincranky

    captaincranky TechSpot Addict Posts: 13,005   +2,532

    I figured it would give the millennials something to "google". Besides, there's probably one or three more, they just won't admit to it...;)
    Because in the dogma of the Catholic church, "admission absolves guilt", I can state without remorse, "I am a dirty old man, and damned proud of it".
    (OK kidz, the above photograph was posted for informational purposes only. It's also a friendly reminder to put down those iPhones once in a while, and enjoy the visual splendor the real world has to offer).

    And Amazon still stocks Hula-Hoops: (albeit I'm pretty certain they're made in China instead of the USA these days). Note: product is different from the one pictured in the photo above.
    Last edited: Feb 4, 2016
    Skidmarksdeluxe likes this.
  8. Uncle Al

    Uncle Al TS Evangelist Posts: 3,343   +1,987

    Give the consumer fewer choices ...... an interesting concept; certainly hope it doesn't catch on! The real issue is the price point plus the fact that there are a few other serious competitors out there. Brand loyalty just isn't what it used to be and when there is no discernible difference in features and quality the majority of folks would rather save the bucks. Maybe he should be trying a twofer???
  9. captaincranky

    captaincranky TechSpot Addict Posts: 13,005   +2,532

    It's already has!:eek: Consider M$'s approach to Windows 10's distribution.

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