GoPro Inc (NASDAQ:GPRO) is in the process of streamlining its portfolio of cameras. Towards that end, the company has revealed plans to end production and sale of certain action camera models. That could come as early as this spring. The camera models targeted for removal from the portfolio are HERO, HERO+ and HERO+ LCD.
The idea of slashing camera portfolio is aimed at allowing GoPro Inc (NASDAQ:GPRO) to have a more pointed camera business. It is worth mentioning at this juncture that GoPro is struggling to cope with low demand for its cameras amid swelling competition. Efforts to sell GoPro cameras to non-adventure users have largely underperformed expectations, necessitating portfolio restructuring. The company’s most recent quarterly report highlighted its financial troubles as both top and bottom line figures disappointed.
Narrow camera business
Ending production of the mostly low-cost HERO cameras will allow GoPro Inc(NASDAQ:GPRO) to concentrate on a line of action cameras that have better chances of success. In particular, the company is trying to narrow its camera business focus to HERO 4 Black, a $500 model, HERO 4 Silver, a $400 model and HERO 4 Sessions, which launched at $400 but now sells for $200.
GoPro has also promised to launch HERO 5 later this year to expand its line of high-end adventure-themed cameras.
The HERO+ LCD, HERO+ and HERO, which GoPro has earmarked for removal, cost $300, $200 and $130, respectively.
As part of driving interest in its action cameras, GoPro’s CEO, Nicholas Woodman, also recently talked about revamping their software offering. GoPro wants customers to have a much easier time accessing, extracting and editing their GoPro content.
GoPro Inc (NASDAQ:GPRO) reported lackluster 4Q2015. Revenue of $437 million dropped $197 million from revenue of a similar quarter a year earlier. The revenue figure also fell short of the consensus estimate. Profit of $128 million was less than 50% of the profit in the same quarter in the previous year.
It didn’t help matters that GoPro also guided softly for the current quarter, expecting revenue of $180 million at most when the consensus estimate is calling for revenue of at least $298 million.