It's The Same Old Song For GoPro
Bluefin Research Partners’ John Donovan said that during Q1 GoPro Inc (NASDAQ: GPRO) purely focused on product consolidation and properly addressing the low-end, high-end, and mid-range markets.
There was a sharp decline in inventory during the first three months and GoPro cut prices to address all markets with Hero4 SKUs, analyst John Donovan mentioned. He added that although the company made several price reductions, “the upside is that the price cuts sparked sales to surpass 700,000 cameras.”
The delay in the Karma drone has created a “wait-and-see” transition period. While the delay gives more time for additional design tweaks and pricing adjustments, it also allows leaders like 3D Robotics, Yuneec and DJI innovations to strengthen their positions, making the challenge for GoPro even tougher, Donovan commented.
“The real focus here is Hero5 and GPRO is playing with fire with ongoing delays. While the company does have a fairly loyal installed base, it will be more than 2 years for a product refresh in an unproven market environment, while a slate of lower-cost suppliers are beginning to saturate the market,” the analyst added.
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