GoPro Inc. (NASDAQ:GPRO) is looking to reduce its overreliance of the U.S markets in terms of product sales with the expected tapping of international marketplaces especially China. The move according to TheStreet’s, Brittany Umar, was precipitated by the giant cam maker enjoying increased demand for its products over the just-ended holiday season.
Morgan Stanley (NYSE:MS) analyst, James Faucette, on a research note to investors has already pointed out that GoPro might be dealing with increased demand for cameras than earlier thought. The analyst believes the company could register increased ASPs with the ongoing push for more market share.
“GoPro Inc. (NASDAQ:GPRO) is planning to expand its international distribution in China this year, according to the financial times. The move would reduce the company’s reliance on the U.S market after a record launch for its new hero action camera over the holiday season,” said Mrs. Umar
CEO, Nick Woodman, has also pointed out that GoPro could enjoy increased demand in the coming months as the race for drones heats up with the company expected to furnish some of them with cameras.
Woodman has also pointed out that the company had the best new product introduction in history especially with Hero 4 line. GoPro Inc. (NASDAQ:GPRO) will not rush to tap into the Chinese marketplace without putting everything into place at the back of a great brand presentation
Concerns have been raised in the recent past that GoPro Inc. (NASDAQ:GPRO) could face severe headwinds with the entry of more competition, something that Faucette vehemently refutes. The analyst has pointed out that retailers indicated limited perceived competition from the likes of Sony Corp (ADR) (NYSE:SNE) and Garmin Ltd. (NASDAQ:GRMN).
Faucette maintains that mass purchases by tourists at major locations may suggest increased demand especially from international markets. The CEO, on the other hand, expects GoPro Inc. (NASDAQ:GPRO)’s ‘Rockstar brand’ to be the main difference in the space in fending off competition from other players.
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