"Aerial Market Untenable": No More GoPro Drones

"Aerial Market Untenable": No More GoPro Drones

"GoPro is committed to turning our business around in 2018", Woodman said alongside the news about the end of Karma. CNBC also reported GoPro has hired JP Morgan Chase to help it seek a potential sale.

GoPro (gpro) had a rough Monday with its stock tumbling as much as 33% to $5.04 after the company confirmed that it would lay off 20% of its workforce, or about 250 people.

The drone remained the second most popular of its price class after the recall, GoPro said, but an "extremely competitive aerial market", as well as a "hostile regulatory environment" in Europe and the United States made the product's future "untenable". GoPro shares plunged 23 percent in early-hours trading, before hitting a built-in stop and trading paused temporarily.

GoPro is now also facing financial trouble, with the company laying off staff and reducing the salary of CEO Nicholas Woodman, to $1.

GoPro has been struggling financially for several years, and was counting on the Karma and the drone business to help them retain market share. "GoPro will continue to provide service and support to Karma customers". Some of GoPro's biggest competitors include DJI and AeroVironment. "I think they made a strategic error in pursuing entry into such a competitive space, and it proves how hard consumer electronics innovation has become".

The fourth quarter of 2017 saw the company take in $340 million, significantly less than in previous years. Wall Street analysts had earlier forecast GoPro to report sales of $472 million for the quarter. GoPro also said that would kill its Karma drone business amid poor sales and a glitch that caused the device to shut down in mid-flight and led to a recall after it debuted in late 2016. Unfortunately, as it stands, it seems an understatement to say that GoPro's early quarterly results leave a lot to be desired. Woodman said sales did improve somewhat after GoPro cut the price of the Hero5 on December 10.

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