The action camera manufacturer has decided to enter the drone production market after it sent a video footage to its investors.
It is safe to say that for GoPro Inc.2015 has been one of the most terrible years that the company has had, as the stock of the camera manufacturer plunged as much as 70%. The sole reason was this decline was due to the slow growth as well as the lack of innovation in its pipeline.
As the new device of the action camera manufacturer, Hero 4 Session performed poorly in the market because of the poor pricing strategy and marketing by the company. According to predictions by the bulls of the company, the camera manufacturer is expected to get its sales growth game up again with the help of its new drone and flagship cameras.
The latest device that the company has been trying to bride its investors with is a drone along with a $300 million buyback. The company sent footage to the investors of a prototype drone that is working on. It emphasizes on the fact that the video that the drone make is ‘silky smooth’ and there was no post production editing after the shoot of the video. It suggests that this new device can eradicate the need for vibration isolation mounts and other video stabilization software.
As of now, no specifications of the drone device have been disclosed by the company neither a picture of the drone. At this point, only the video shot by the drone itself has been shared. Currently, the only other competitor in the market against GoPro is DJI Innovations, which is considered the largest drone maker in the market. The drone manufacturer launched its first ever device called the Phantom over two years ago; it was quite a popular device and is expected to generate as much as $1 billion in the current year.
Other rivals in the market could be Intel and Qualcomm in time as they are still looking for ways to reduce the cost for drone manufacturing with specific designs made on their own chips. According to the predictions by the analysts for fiscal year 2016 the action camera giant is expected to generate as much as $2 billion in revenue. The company can easily overcome this slow growth in action camera, if it is able to generate 20% of what DJI Innovation’s 2015 revenue. But even that is a long shot in case the FAA introduces new regulations for the drone consumer demand.
According to Motley Fool, it is believed that the company should be more excited about its upcoming drone device, as it has managed to attract a number of people. In case, this innovation device work exactly how it has shown in the footage that it would, then it could generate fresh sales and increase its sales growth again in no time.