GoPro streamlines camera lineup to just HERO4 series models

GoPro streamlines camera lineup to just HERO4 series models

GoPro today announced that it is streamlining its existing camera lineup to just the HERO4 series models. The new development emerges as a solution to simplify the HERO action camera portfolio ahead the launch of the Karma drone and the next-generation HERO5.

CEO Nick Woodman revealed that GoPro is set to discontinue the entry-level HERO, HERO+ and HERO+ LCD models starting April this year. “Fourth quarter and full year results were impacted by a charge of approximately $57 million resulting from our decision to end-of-life the entry-level HERO, HERO+ and HERO+ LCD products which we will stop selling in April,” Woodman said on an investors call. “This is charge is higher than the $30 million to $35 million write-off that was communicated in January and is due to our subsequent decisions to simplify our product line to a good, better, best offering of HERO4 Session, Silver and Black cameras.”

Decline in revenues

Although the latest earnings are considered as the “second highest” in GoPro’s history after topped once at the time of HERO4 launch in 2014, it resulted in a major decline in the quarterly revenue. The company posted a loss of 8 cents a share compared with a profit of 99 cents a share in 2015. Further, it generated $436.6 million revenue in the fourth quarter, a 31 percent drop from the year-ago quarter.

GoPro HERO4

GoPro HERO4 to be the only product lineup in the company’s portfolio by this April

GoPro shipped more than 6.5 million HERO series action cameras in 2015, up 27 percent year-over-year, and announced a cumulative total of over 20 million units since 2009. In the fourth quarter, the company decided to reduce the price of its HERO4 Session to $199 that allegedly a copy of the Polaroid Cube.

In addition to its hardware, GoPro started focusing on developing new experiences through software in the recent past. The company signed content-sharing agreements with distributors like YouTube, Facebook, Instagram, Xbox One, PlayStation and Roku to expand its presence. Also, most recently, it partnered with Twitter to enable live video streaming directly through Periscope.

Woodman stated that GoPro believes “strong correlations” in views of content and sales of its action camera models and accessories. He also mentioned that instead of being an action camera company, he prefers it to be considered as an “activity capture company”.

New launches in 2016

In April last year, San Mateo, California-based GoPro acquired virtual reality (VR) company Kolor. This acquisition is currently in process to help the company develop new VR experiences. Also, the company showcased its first-ever drone Karma that would be launched sometime in the first-half of this year.

“Drones are just one of the investments we are making that will change how the world will create and experience content,” stated Tony Bates, chief financial officer, GoPro. “And another key initiative for GoPro is virtual reality, and we have several products in development that will position GoPro as a leader in VR.”

The GoPro HERO5 action camera is set to be debuted later this year. Woodman teased its arrival by mentioning that it will be the “most connected and convenient GoPro”, without revealing any particular details about its price and a specific release date.

Needs to influence investors through fruitful results

Despite all these developments, analysts believe that investors are not likely to be influenced just by the future plans. The streamlined portfolio is needed to uplift the performance of the company to mark growth in the coming future. Moreover, the company needs to focus on maintaining its existing lineup with improved software experiences to distinguish its presence in the competitive market of action cameras.

Categories: Cameras