GoPro Will No Longer Make Drones
GoPro isn’t in a very good place right now. After the recent plummet in stocks and the string of layoffs, GoPro is announcing that it’s also finally exiting the drone business. If that doesn’t look good from the outside, it’s because it isn’t; founder and CEO Nick Woodman is reported to reduce his salary to a single dollar this year.
The GoPro Karma, the company’s divisive attempt at drones, is also going to be discontinued upon the exhaustion of its remaining supply. This gives its major competitor, DJI, a major leg-up in an area where it’s already clearly dominating.
“Although Karma reached the #2 market position in its price band in 2017, the product faces margin challenges in an extremely competitive aerial market,” GoPro says. “Furthermore, a hostile regulatory environment in Europe and the United States will likely reduce the total addressable market in the years ahead.
“These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory. GoPro will continue to provide service and support to Karma customers.”
Woodman says he wants to keep GoPro independent while keeping it afloat, but a recent report from CNBC reveals that the company appears to have hired J.P. Morgan in aiding to put the company for sale to a potential acquirer.