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charlesarthur : gopro   5

GoPro to move US-bound camera production out of China • Reuters
Arjun Panchadar:
<p>GoPro on Monday took the first steps to move most of its US-bound camera production out of China by the summer of 2019 to counter the potential impact from any new tariffs.

The company had previously said it was being “very proactive” about the situation regarding tariffs as US and China ramped up its bitter trade war, in which both nations have imposed tariffs on hundreds of billions of dollars of each other’s imports.

GoPro said international-bound camera production will remain in China.

“It’s important to note that we own our own production equipment while our manufacturing partner provides the facilities, so we expect to make this move at a relatively low cost,” said chief financial officer Brian McGee.</p>

Costs imposed by tariffs. And then tariffs on the end product. Not really going to help GoPro, which is struggling to find profitability.
gopro  china  tariffs 
december 2018 by charlesarthur
GoPro reports smaller-than-expected loss on lower costs • Reuters
<p>Action-camera maker GoPro Inc reported a smaller-than-expected first-quarter loss on Thursday as the company cut costs and sold more of its new entry-level cameras…

GoPro — whose cameras are used by surfers, skydivers and other action junkies — said revenue fell to $202.35 million from $218.61 million. Analysts had expected revenue of $184.2m. The company’s net loss narrowed to $76.3m in the quarter ended March 31, from $111.2m a year earlier. Total operating expenses fell to $119.7m from $156.8m.

The company - which exited its Karma drone business to stem losses- has been trying to attract users with its $199.99 entry-level HERO camera that was announced in March.

The company in April also announced huge discounts and trade-up programs for its premium products.

Demand for GoPro’s cameras have been waning as users move to cheaper options and smartphones with powerful cameras.</p>

As with Fitbit yesterday, the question has to be: how close to the ground is it going to get before it's scooped up? There's no reason for it to exist in its own right; it doesn't have enough of an ecosystem. Hardware on its own is insufficient - something that Cisco (rightly, in retrospect) figured out when it <a href="">abruptly closed its Flip camera division in 2011</a> as smartphones ate its business.

Likely buyer: Xiaomi, which should have some cash to spare soon. (Read on.)
gopro  xiaomi 
may 2018 by charlesarthur
Xiaomi could be just the hero GoPro needs • Bloomberg Gadfly
Tim Culpan:
<p>GoPro's problem is that it hasn't done much in 16 years. Its product line is little changed, with mere iterations of the same tiny rugged camera, and the company still relies on its home market for the bulk of sales. Consider that in 2004 - when GoPro released its first camera - Apple Inc.'s hottest product by units was the iPod.

The few attempts to diversify have failed. An entry into the drone market in 2016 lasted less than 15 months at a time when DJI and others were enjoying booming growth. Asia accounts for just 21% of revenue.

Xiaomi, meanwhile, can't be accused of standing still. The Chinese smartphone startup has its fingers in so many pies that it's hard to keep up. So it makes sense that it would consider making a a bid for GoPro, as The Information reported. Xiaomi may offer up to $1bn, but doesn't want to overpay, the news website said.

A tie-up with another device maker is exactly the future I envision for GoPro. Right now it's a technical feat to film a day on the slopes, then take it back to show on the TV in your ski lodge. For many, it's just easier to shoot with an iPhone and a selfie stick, which is the crowd Woodman should be chasing. A combination with Roku Inc., the provider of streaming content players, is one I have advocated for a while. Xiaomi has MiBox, as well as routers and other connected devices.

A $1bn outlay for Xiaomi shouldn't damage its balance sheet, and the upside could be immense.</p>

Agree - this could be just what GoPro needs (though I imagine a wailing at the idea of an American company being bought by a Chinese one). For good measure it could buy Fitbit too, which also needs a white knight while its smartwatch business seeks liftoff.
Xiaomi  fitbit  gopro 
april 2018 by charlesarthur
GoPro stock crashes more than 10% after failing to meet Wall Street’s expectations • TechCrunch
Matt Burns:
<p>The company reported $540m in fourth-quarter revenue, with a net income loss of $.082 a share. That’s under what analysts expected. And the company didn’t fare much better in yearly reporting either, netting just $1,185m in 2016, down 26.8% from 2015.

The company notes the $0.82 per share loss includes charges of $102m for a full valuation allowance on U.S. deferred tax assets and nearly $37m for restructuring costs.

GoPro’s stock is currently trading down more than 10% on the day. The stock previously saw modest gains in the early days of 2017 and had climbed 23% in January alone.

There are some bright spots for GoPro. The company notes that the previous quarter generated the second-most revenue in the company’s history and the new Hero5 Black was the best-selling digital imaging device in units and dollars. And just yesterday, the company relaunched the Karma drone that was previously pulled from the market.</p>

First Fitbit, now GoPro. (It isn't much to say your revenue was "second-highest ever" when you're meant to still be on the way up.)
GoPro  business 
february 2017 by charlesarthur
Solid holiday demand in the US for GoPro HERO5 • PR Newswire
Here's GoPro's announcement. See if you can spot the hidden actual news (I've cut off the first three paragraphs, which talk about how well the HERO5 has sold compared to last year):
<p>"We have a lot of work to do to finish the quarter and our fiscal year, however our HERO5 cameras have been very well-received by critics and consumers alike," said Nicholas Woodman, Founder & CEO of GoPro. "Both HERO5 cameras can now auto-offload new content to the cloud and our Quik mobile app makes accessing and editing your footage fun. Its clear consumers are excited about these new features."

GoPro also announced a company-wide restructuring that will reduce full-year 2017 non-GAAP operating expenses to approximately $650m (GAAP: $735m) and achieve its goal of returning to non-GAAP profitability in 2017. The restructuring includes the closure of its entertainment division, facilities reductions, and the elimination of more than 200 full-time positions plus the cancelation of open positions for a reduction in force of approximately 15%.

Additionally, Tony Bates will depart his position as president of the Company at the end of the year. </p>

That's a lot of jobs going. And closure of the "entertainment division", with which it had wanted to get beyond simple device sales and <a href="">into original shows</a>. Reality bites. (Every news organisation led on the staff cuts and closure.)
november 2016 by charlesarthur

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