GoPro Inc (NASDAQ:GPRO) is making a big and interesting move with another hardware – consumer drones. The action camera company’s latest move came in focus on Bloomberg as The Roundup team looked at the development that could ruffle feathers in the drone industry while creating new revenue stream for GoPro. In just a few years, big names have entered the drone industry, signaling just how the market has become lucrative and mainstream.
“It’s become a company enabling so many viral action videos, and now GoPRO is developing its own line of consumer drones, according to the Wall Street Journal. Multi-rotor helicopters are said to be going on sale next year for anywhere between $500 and $1000,” observed one of the Roundup team members.
Consumer drones come in the form of lightweight helicopters. They are also bundled with cameras to allow control, which can be done from a tablet device or a smartphone. Consumer drones have mostly been taken up by hobbyists, and the regulator allows for such use, which creates an opportunity that GoPro Inc (NASDAQ:GPRO) wants to tap.
“What is interesting about this story is GoPro Inc (NASDAQ:GPRO) already sells many of its cameras to drone companies. It partners with drone companies and now is going to be competing directly with those companies. It’s sort of an interesting move, and it will see whether those partners get upset about this,” said Julie Hayman.
With a focus on hobbyists, consumer drones are expected to sell more this festive season. GoPro Inc (NASDAQ:GPRO) may also want to tout its drones for taking of selfie photos this holiday.
“It is clearly a way to diversify their revenue sources. I know that was a big aspect when they went public back in June. The stock is up three times the price it was back in June. They were very much touting this diversifying their revenue stream. Of course back then it was all about content, media and how they would use that footage to gain more revenue,” said Leslie Picker.
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