Just in case you have any doubt about it, let us tell you that GoPro has confirmed it's killing off its drone division and laying off 20 percent of its workforce. The company has officially announced that it has stopped making the drone and will exit the drone market.
The company has decided to get out of the drone business and focus more on its action cameras, for which it is best known. The reason behind the shutting down of the drone division is that the Karma, its ill-fated first drone, failed to sell.
"Although Karma reached the number two market position in its price band in 2017, the product faces margin challenges in an extremely competitive aerial market," said GoPro in an earnings report.
GoPro in 2016 launched its drone with much hype: many teasers and trailers. But GoPro recalled the drones due to some technical problems. The drone went back on sale in 2017, but by then it was too late for GoPro.
This time it faced huge competition from DJI — which had launched it compact Mavic Pro and the Spark that time.
With seemingly no follow-up model in the works or at least nothing to take on he competition from DJI, GoPro has thrown in the towel. It will result in 250 employees being laid off.
Reports also suggest that the sales of the Hero 5 model of GoPro's action cameras did not match up to expectations, so GoPro cut its prices in December and then reduced the price of the Hero 6 from the original £499.99 in January.
It was becoming very difficult for GoPro to make money selling drones, especially when everyone was looking to buy a small drone. GoPro says it will quit making drones once the Karma inventory is sold, but it will not stop providing service and support to the ones already sold.
"GoPro is committed to turning our business around in 2018," Woodman said alongside the news about the end of Karma.
"We entered the New Year with strong sell-through and are excited with our hardware and software roadmap. We expect that going forward, our roadmap coupled with a lower operating expense model will enable GoPro to return to profitability and growth in the second half of 2018."
According to BGR's report: "The market didn't take this news well. GoPro shares plunged 23 percent in early-hours trading, before hitting a built-in stop and trading paused temporarily. After trading resumed, the shares fell further, and the stock was down 30 percent by 10 am."
For now, the company seems to be working hard on its action cameras, and we can expect to see some more price cuts on the Hero series. Moreover, we can expect some aggressive promotion and some new cameras soon, with cheap rates.