GoPro’s history of growth is looking unsustainable, as action cameras saturate buyers and replacements cycles apparently are longer than GoPro would hope. In the second quarter ending June 30, GoPro’s saw a quarterly loss of $91.7 million. That compares to a profit of $35 million in the same period a year prior. Revenue fell 47 percent.
GoPro was sure to point out that revenue came in ahead of industry predictions, and company CEO Nicholas Woodman spoke to a better second half of the year due to a “simple product line, a clean retail channel and clear indications of strong consumer demand.”
But one has to wonder if demand will meet his expectations. After all, GoPro’s revenue declines apparently did not come via loss of market share to competitors. According to The NPD Group, GoPro accounted for 6 of the top 10 products, including the top 3 spots, on a unit basis in the digital camera/camcorder category in the U.S. in the second quarter. HERO4 Silver remains the best-selling digital image camera on a unit and dollar basis for the seventh consecutive quarter. In the second quarter, GoPro’s share of combined digital camera/camcorder unit sales increased, despite a dip in revenue for the company of nearly 50 percent.
In other words, if GoPro is not getting the sales, maybe the sales just aren’t there anymore.