Oppenheimer Managing Director: Xiaomi Launching Camera Will 'Put The Kibosh On' GoPro's Strategy For Asia

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There are strong rumours that Chinese tech upstart Xiaomi is working on launching an adventure camera, similar to what GoPro Inc GPRO makes.


Andrew Uerkwitz, Oppenheimer managing director, was on CNBC recently to discuss what impact those rumors being true will have on GoPro and GoPro's recent focus on video content.


If Google Can't With YouTube, Even GoPro Won't Be Able To Monetize Video Content


"We absolutely agree in fact I will even argue that management of GoPro agrees. If you listen to last earnings call, they talk about using media, using YouTube, using these Roku channels more the way to drive traffic to their devices and less about monetizing content," Uerkwitz replied.


He added, "I think anybody who is trying to value GoPro on a media strategy doesn't fully understand the story and should really look at this as a hardware play."


Xiaomi Can Pose A Big Challenge In Asia


When asked if Xiaomi's rumoured camera can pose a threat to GoPro in China, Uerkwitz replied, "Xiaomi was working on something, the teaser video looks like awfully like a camera and so one thing that we think Xiaomi has going for it is it has got a really great user base, its got a really good following in China and other Asian countries. Call it like GoPro, they have a customer base that's really strong."


"So, we think if Xiaomi does launch a camera, Xiaomi will have a very good shot at taking the leading share, taking big share against GoPro. The other reason why is I think Xiaomi's camera is going to cost you $100-150 and GoPro's cameras obviously cost $3-400. So, I think this really puts the kibosh on GoPro's strategy for Asia, China in particular," Uerkwitz concluded.

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Posted In: CNBCMedia
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