GoPro Inc (NASDAQ:GPRO) might have a new challenge on its hand, in the name of Xiaomi, which is reportedly launching a mystery product believed to be a waterproof miniature camera. GoPro push to use the likes of YouTube to popularize its products is another frontier that CNBC’s, Mellissa Lee, believes the cam maker could struggle; Google Inc. (NASDAQ:GOOGL) having struggled to monetize users on this platform.
GoPro has in the recent past announced plans to use media channels for driving traffic to its products in the wake of increased competition in the sale of cameras. It remains to be seen how successful the company will be on this frontier even as Xiaomi reiterates plans to enter the camera making business. Oppenheimer Managing Director, Andrew Uerkwitz, maintains GoPro Inc (NASDAQ:GPRO) should not be valued as a media company but as a hardware maker.
“I think anyone who is trying to value GoPro Inc (NASDAQ:GPRO) on a media strategy doesn’t fully understand the story and should really look at this as a hardware play,” said Mr. Uerkwitz.
Xiaomi is another company that looks set to provide GoPro with a series of headwinds going forward having released a series of teaser images that people believe could be a miniature waterproof camera in the offing.
GoPro Inc (NASDAQ:GPRO) market share in the camera making business could be substantially affected by the fact that Xiaomi also does enjoy a huge following back at home. The Chinese hardware maker is also expected to produce miniature cameras going for as low as $100-$150, expected to fend off competition from GoPro Inc (NASDAQ:GPRO)’s $300-$400 high-end cameras.
“One thing we think Xiaomi has going forward is it has got a really great user base, It has got a really good user following in China and other Asia companies. Like GoPro Inc (NASDAQ:GPRO) they have a customer base that is really strong. So we think if Xiaomi does launch a camera Xiaomi will have a very good shot of taking leading share taking big share against GoPro,” said Mr. Uerkwitz.
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