New York (The Verge) — GoPro is finally shaking off the pain of quitting the drone business theverge.com/2019/5/10/1856….
The Hero 7 Black has helped GoPro right the ship, and the timing couldn’t be better, because DJI is about to unveil an action camera of its own.
A big reason for the company’s recent success (GoPro also recently notched its first quarterly profit in over a year) is the Hero 7 Black, which is off to the best start ever for one of the company’s cameras. Another reason is that GoPro has finally healed (financially, at least) from the decision in January 2018 to shutter the Karma quadcopter and exit the drone business completely. That’s a good thing, too, because based on a number of recent leaks and rumors, DJI is about to make a move into GoPro’s space by releasing a direct competitor to the Hero 7 Black.
GoPro didn’t mention Karma by name in its letter to shareholders on Thursday or dwell on it during a subsequent call with analysts. But it did say in the letter that “excluding our aerial business, [quarterly] revenue would have increased 27% year-over-year.” Reading between the lines here, GoPro acknowledges Karma brought in some money, but that extra bump in revenue ultimately wasn’t worth the operating costs and R&D expenses it required. Karma was a big reason why the loss in last year’s first quarter was so much bigger. Returning the focus to cameras has helped GoPro get to a more sustainable footing. — Sean O'Kane/@verge