It was once the king of the action cameras, but in recent years increased competition and limited diversification has taken its toll on GoPro and its cameras. Can it rise again?
GoPro has certainly not had an easy time of late, with the need to lay off staff and a stagnated stock price. No doubt recent events in the US haven't helped, with the stock market as a whole suffering a major downturn from what was a high point. At the time of writing, GoPro's stock price is standing at $0.69, and it has been on a general downward trend for a long time now. For reference, the price stood at $2.44 in March 2024, although both figures pale in comparison to the nearly $87 it stood at in 2014.
It's known that GoPro has been making a loss for a while now, and year on year the figures just seem to get worse; revenue for example, was down 32% year on year in the fourth quarter of last year. So, can GoPro turn things around? And why is it in this situation in the first place?
New entrants, poor products
Certainly, increased competition from Insta360 and DJI are contributing factors. There is a perception from some users of these cameras that GoPro has failed to innovate with each HERO release. The company has come under criticism for releases like the HERO12, which was effectively a HERO11 with a firmware upgrade giving it more capabilities. Factors like this have driven many to seek out the alternatives.
Whereas once upon a time competing action camera manufacturers were playing catch up to GoPro, their products are now equal to or even outperforming the HERO cameras. From what insiders have said in the past, there might have been some complacency playing a part, with the company relying on its brand recognition as the leader in its market. That's not to say that competitors haven't been having issues of their own, though. Recent firmware update botches to the DJI Osmo Action 5 Pro have caused some consternation, driving some people back to GoPro.
In reality, the GoPro HERO Black is still an exceptionally good action camera. While I believe it could do with a wider lens with less distortion so that it doesn't have to rely on overly distorted modes like HyperView, the image has a creamy smooth quality that competitors cannot match when setup right. But, where image quality is certainly up there, the HERO series suffers from lower battery life to competitors, and the 10nm GP2 chip is long overdue a replacement in the face of the 4nm and 5nm chips that are inside the Action 5 Pro and Ace Pro 2 respectively.
But overall, GoPro simply doesn't have the resources of a company like DJI or Insta360. Whereas those companies can produce multiple products for multiple markets (and the two companies may even share technology), GoPro has to be much more careful and selective about where its R&D costs go.
We've seen delays to the GoPro MAX360 2 which, just as I suspected, is because the company wants to integrate its new GP3 processor into it. The development of the GP3 is good news to hear, and depending on how good it is, stands to bring GoPro back into the fight. But is it too little, too late?
Diversification has always been GoPro's achilles heel. It has tried in the past with drones, and now more recently with the purchase of a smart motorcycle helmet company, Forcite. Personally, I've always felt like these diversification attempts have been a bit random, not really playing to GoPro's strengths. Even the 360 camera I felt was too niche, although it did turn out to be very popular.
Lens Mods for the HERO13 are a USP, but quite niche in use
Logical diversification
One of the biggest selling cameras of 2024 was the DJI Pocket 3, and for good reason. Vlogging cameras are a big thing, and the Pocket 3 does a very good job for the duties it was designed for, but it isn't waterproof. GoPro users have been crying out for a larger sensor camera for years now, and while I do not think it would suit the HERO range, it really does puzzle me as to why GoPro hasn't tried to take advantage of this gaping big open goal and developed a vlogging camera.
Such a device could share many of the components of the HERO cameras, but with a larger sensor and autofocus. It could be fully waterproof, although not quite as robust as the HERO in high vibration scenarios due to the autofocus mechanism. However, it would be able to utilise the HyperSmooth stabilisation system. GoPro could also develop a wireless/wired mic for it that could also be completely waterproof. The mic could be wired if you are spending a lot of time in and under the water, and wireless for most other situations, complete with 32-bit float onboard recording.
As far as development goes, it would require minimal R&D due to the amount of shared components and software as the HERO action camera series, it would give many users the type of camera they've been crying out for from the company, and it would give GoPro a useful and logical product diversification. I'm quite staggered that it has never even thought of making such a device, particularly given that no other company has really made a truly robust, waterproof device of this type with a truly integrated and versatile waterproof microphone solution. It wouldn't replace the HERO series, but it would be a separate product line.
GoPro's long term fate is unknown, and recent turmoil with tariffs and trade wars are not going to be helping things at all. But, if GoPro listens and gives people what they have been asking for, playing to its strengths rather than going off on tangents with motorcycle helmets, there's no reason why things can't be turned around. After all, Apple was once teetering on the edge of a precipice, but it was rescued with the release of the original iMac before then building its new empire on devices and services. The question is, is GoPro listening?
tl;dr
- GoPro has faced significant challenges, including layoffs and a declining stock price, which currently stands at $0.69, down from nearly $87 in 2014, with a 32% revenue decrease year-on-year in the last quarter.
- Increased competition from brands like Insta360 and DJI has made it difficult for GoPro to maintain its market leadership, with some critics claiming that recent HERO releases lack genuine innovation.
- The HERO Black remains a high-quality action camera, but it struggles with battery life and outdated technology compared to competitors, while GoPro lacks the resources for extensive R&D like its rivals.
- Diversification attempts, including drones and smart helmets, have been seen as inconsistent with GoPro’s strengths, with a missed opportunity noted for developing a vlogging camera that could fulfill a market need with shared components from existing HERO cameras.