Xiaomi might be known for its disruptive effect in the smartphone arena but it is slowly becoming a force to reckon with in the action camera space. The Chinese sensation is slowly giving GoPro Inc (NASDAQ:GPRO) something to think about with the release of its Yi Action Camera that incorporates high-end specs. However, CNBC’s contributor, Dan Nathan, believes Xiaomi poses no threat to GoPro’s market share in the U.S, because of the aspects of brand loyalty that the latter enjoys.
GoPro Inc (NASDAQ:GPRO) stock has been a big disappointment in the market in the recent months arousing concerns of what the future holds for the stock amidst stiff competition going forward.
“I don’t think this Xiaomi has a shot in a market like the US, GoPro’s are made in China but we just don’t want Chinese brand I mean that is what it comes down to. Americans have bought into this GoPro brand,” said Mr. Nathan.
GoPro might enjoy an advantage in the US, but its effort to expand abroad especially in China could be dealt a major blow as Xiaomi products continue to appear exciting in terms of cost. Xiaomi Yi Action Camera goes for $64, half the price of GoPro Inc (NASDAQ:GPRO)’s action camera that goes for $129.
Unlike other Chinese iteration that have tried to compete against GoPro, Xiaomi is the first one to find a way to integrate its technology well, allowing the app to work properly with Android phones. The fact that Android phones continue to dominate emerging markets should be a key bonus point for Xiaomi in rivalling GoPro Inc (NASDAQ:GPRO) in terms of unit sales affirms CNBC’s, Eunice Yoon.
“The Xiaomi Yi does really well, and it is very cheap and so people have a lot of pride in it, and it is just doing really well. I see it as a real competitor to GoPro in China, and if it goes globally then it could potentially be a competitor for GoPro Inc (NASDAQ:GPRO) there too,” said Mrs. Yoon.
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