IMHO, they are wrong. GoPro has build a very good reputation. If the margins are too small, they could increase their prices and slightly erode their reputation. If they quit, they lose what they have build. A long time ago, I have heard the story of a sotfware company that was on the verge of bankruptcy because of their small margin. They decided to triple their prices and update the packaging. They have lost half their clients and saved the company that became very profitable. When Oracle bought Sun, they almost double the prices of many services. If Sun did it, maybe it would last longer.
I agree. Investors tend to group GoPro in with FitBit and several other niche personal technologies. There are some nuances that get lost in translation from consumer to investor.
I have owned a number of their products, and have (twice) sent in a Hero4 for a free replacement after it stopped working. I use these cameras during long distance trips on my motorcycle, so I don't think the failures of those two cameras were entirely due to a manufacturer's defect. Still, no questions asked, they took care of me and even sent me a free gift after the second time one of my store-bought Hero4's malfunctioned.
I like the product and the connectivity has gotten a lot better with the Hero6.
I purchased one of their panoramic cameras a while back for eval. The thing was ok, but under-specced and overpriced in the market, and their support was _awful_. Never again.
Comments
IMHO, they are wrong. GoPro has build a very good reputation. If the margins are too small, they could increase their prices and slightly erode their reputation. If they quit, they lose what they have build. A long time ago, I have heard the story of a sotfware company that was on the verge of bankruptcy because of their small margin. They decided to triple their prices and update the packaging. They have lost half their clients and saved the company that became very profitable. When Oracle bought Sun, they almost double the prices of many services. If Sun did it, maybe it would last longer.
The reputation they built has been spilling on the floor for a couple of years I'm afraid.
To investors, but I feel it maintains its repute as an established brand with the average consumer.
I agree. Investors tend to group GoPro in with FitBit and several other niche personal technologies. There are some nuances that get lost in translation from consumer to investor.
I have owned a number of their products, and have (twice) sent in a Hero4 for a free replacement after it stopped working. I use these cameras during long distance trips on my motorcycle, so I don't think the failures of those two cameras were entirely due to a manufacturer's defect. Still, no questions asked, they took care of me and even sent me a free gift after the second time one of my store-bought Hero4's malfunctioned.
I like the product and the connectivity has gotten a lot better with the Hero6.
I purchased one of their panoramic cameras a while back for eval. The thing was ok, but under-specced and overpriced in the market, and their support was _awful_. Never again.