GoPro hopes to propel profits with Karma drone

AFP, SQUAW VALLEY: GoPro took to the sky Monday with a much-awaited drone called Karma in the hope of lifting profits which have been battered by competition from all sides.
The launch of the Karma drone, tailored for its first-person-action mini-cameras, and of improved Hero5 cameras comes on the cusp of the important year-end holiday shopping season which last year was a huge disappointment.
In the fourth quarter of 2015, GoPro lost about $34.5 million, as revenue sank some 31 percent from the same period in 2014, to $436.6 million.
The earnings report fell well short of financial analysts’ expectations, sparked a series of downgrades and sent GoPro’s shares plunging as competition from smartphone makers turned out to be more threatening than forecast.
This means the Karma launch, which comes alongside new Hero5 cameras and a cloud-based service for storing, editing and sharing video, is instrumental for a revival of the company’s fortunes, analysts said.
“GoPro’s Karma has potential to gain decent traction,” Colin Snow, founder of Skylogic Research, told Bloomberg News, “if it’s priced under $1,000 and has all the capabilities of existing drones in that price category.”
Karma drones will be priced at $799 when they become available starting on October 23.
The drones boast simple joystick and touch-screen controls, and fold easily into a padded backpack that is provided.
An image-stabilizing grip in the drone is designed to hold Hero cameras, which are not included in the backpack.
“We transformed GoPro into an end-to-end storytelling solution,” company chief Nick Woodman said after making a rock-star entrance at a media event in a tent at the Squaw Valley ski area where the 1960 Winter Olympic Games were held.
GoPro’s much anticipated entry into the drone market comes as the California-based company strives to distinguish itself in an increasingly competitive market for mini-cameras that can be used to capture adventures or sports from personal perspectives.
Chinese manufacturer SZ DJI Technology has been dominating the drone market, where many smaller companies producing cheaper drones are also pushing for market share.
Skylogic’s Snow said given hiccups previously seen in the drone market, GoPro’s Karma may experience teething issues.
“Almost no drone we’ve ever seen comes out without a host of problems,” he said.

GoPro hopes to propel profits with Karma drone

AFP, SQUAW VALLEY: GoPro took to the sky Monday with a much-awaited drone called Karma in the hope of lifting profits which have been battered by competition from all sides. The launch of the Karma drone, tailored for its first-person-action mini-cameras, and of improved Hero5 cameras comes on the cusp of the important year-end holiday shopping season which last year was a huge disappointment. In the fourth quarter of 2015, GoPro lost about $34.5 million, as revenue sank some 31 percent from the same period in 2014, to $436.6 million. The earnings report fell well short of financial analysts expectations, sparked a series of downgrades and sent GoPros shares plunging as competition from smartphone makers turned out to be more threatening than forecast. This means the Karma launch, which comes alongside new Hero5 cameras and a cloud-based service for storing, editing and sharing video, is instrumental for a revival of the companys fortunes, analysts said. GoPros Karma has potential to gain decent traction, Colin Snow, founder of Skylogic Research, told Bloomberg News, if its priced under $1,000 and has all the capabilities of existing drones in that price category. Karma drones will be priced at $799 when they become available starting on October 23. The drones boast simple joystick and touch-screen controls, and fold easily into a padded backpack that is provided. An image-stabilizing grip in the drone is designed to hold Hero cameras, which are not included in the backpack. We transformed GoPro into an end-to-end storytelling solution, company chief Nick Woodman said after making a rock-star entrance at a media event in a tent at the Squaw Valley ski area where the 1960 Winter Olympic Games were held. GoPros much anticipated entry into the drone market comes as the California-based company strives to distinguish itself in an increasingly competitive market for mini-cameras that can be used to capture adventures or sports from personal perspectives. Chinese manufacturer SZ DJI Technology has been dominating the drone market, where many smaller companies producing cheaper drones are also pushing for market share. Skylogics Snow said given hiccups previously seen in the drone market, GoPros Karma may experience teething issues. Almost no drone weve ever seen comes out without a host of problems, he said.