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are lightweight, compact, high-definition, strong and fit in one hand. For all these reasons they captured public attention since its launch in 2004.
Are GoPro cameras, which in recent years have delighted lovers of extreme sports and adventure.
But in the last 12 months GoPro Inc., the company that manufactures, saw its shares and sales of crumbling is.
How was the public lost interest in a product that was successful? how are the managers of the company were wrong?
negative results
GoPro announced this week a loss in the last quarter of last year to US $ 34.5 million , while during the same period of 2014, the company posted earnings of US $ 122.3 million .
These figures combined with projections pessimistic analysts sent shares of the company, which went public on the Nasdaq stock Exchange New York in 2014, crumble 19% this week.
as it is 2016, GoPro shares lost 40.5% of its value. Since its peak in 2014 accumulated a decline of 89% .
How to reverse the bad times
Analysts and executive manager himself GoPro, Nicholas Woodman, said it need to improve software programs offered by the company.
” We recognize the need to develop software solutions that make it easier to download, access and edit the content of our consumers GoPro “, Woodman said, according to AFP.
Meanwhile, the analyst, Robert Stone, executive director of the consulting market Cowen and Company, believes that “the newest signature product, the camera Hero4 Session, had a market price too high for consumers.”
the company had tried to sell the Hero4 Session to US $ $ 399 last December but cut its price to US $ 199 , before the little success in public.
A select group
The technology specialist Bob O’Donnell said that originally recorded the explosion GoPro in sales for the quality of its products, not continue in the future because the public that consumes them is very limited.
“GoPro created a new category in action cameras, but those who buy those products belong to a very small section of society” , you O’Donnell told BBC.
in addition, “the high price of cameras and competition began to emerge make the company faces a very difficult future ” he said .
in recent months, several companies, including Sony and Nikon, have taken the camera stock market that had a great reception from the public.
changes
After the presentation of results, announced this week GoPro off CFO , Jack Lazar. He will be replaced by Brian McGee, who joined GoPro in 2015.
In addition, the company decided to cut the supply of its range of cameras.
From April, GoPro only sell Hero4 Molelos Black, Hero4 Silver and Hero4 Session. the rest of the cameras, like Hero, Hero + and Hero + LCD, will no longer be sold.
What about the future?
for O’Donnell, GoPro will have a great challenge in the days to come.
“it is very difficult for the company to reinvent itself, but would have to work in area camera 360 degrees and create drones inexpensive “ he said.
and the suggestion is that analysts continue investing in programs to edit and play back recorded images GoPro.
“software is a particularly critical area” to develop in order to “make it easier to use for most casual users and they can enjoy the best products” , Stone suggested the BBC.
“And this could also be useful to GoPro to differentiate themselves,” he said O’Donnell.
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