GoPro Delays Drone Shipments After Losing $107.5 Million This Quarter
GoPro has delayed shipments of its drone, the Karma, after posting dismal sales figures for the first financial quarter of 2016.
With the company having faced declining consumer interest in its brand, with stock prices having fallen since last year, the company has recorded £107.5 million in losses this quarter, leading to them making the drastic decision to suspend the Karma’s shipments.
While the company’s earning reports claimed that revenue had “exceeded their guide,” the same report also announced that they would be pushing the launch of the Karma into Winter 2016. “While we had to make the difficult decision to delay our drone,” the earnings report notes, “the upside is that Karma’s launch should now benefit from the holidays.”
GoPro’s revenue has dropped by 50 percent as a result of dwindling sales and the discontinuation of several of its brands. In February 2016, the company announced that it was limiting its line of cameras to just three models: the Hero 4 Black, Hero 4 Silver and Hero 4 Session. This news followed the news that the company had suffered through a poor Q4 2015, recording $436.6 million in revenue, marking a 31 percent drop from the same time period in the previous year.
The future is evidently not looking bright for GoPro, with them now pinning the majority of their hopes upon the success of the Karma. Though little is known of the drone (the company hasn’t even released an image of it yet), hopefully it will raise the company’s fortunes considerably. Check it out in action in the below video: