HERO5 cameras important products for GoPro
Consumer Tech (QQQ) firm GoPro (GPRO) launched its HERO5 Black and HERO5 Session in September 2016. Although GoPro missed revenue estimates in 4Q16, it was still the firm’s second-best-performing quarter in terms of revenue, primarily driven by sales of its HERO5 products. The HERO5 cameras are waterproof, voice controlled, and cloud-connected.
The HERO5 Session was the second-largest selling camera in the United States in 4Q16, whereas the HERO5 Black was the largest selling camera in the US and Europe.
Will Karma drive GoPro’s revenue?
GoPro is confident that its Karma product line will be accepted by customers and will drive sales in calendar 2017. GoPro has maintained that Karma is not just a flying camera, but also a stabilization system. GoPro also mentioned that customer feedback and ratings on Best Buy (BBY) and Amazon.com (AMZN) have been encouraging.
Karma would not only diversify GoPro’s revenues beyond cameras but would also boost the company’s camera sales, as the device comes with an attached camera. The basic Karma package costs $800, but its price could rise above $1,000 with add-ons.
Focus on user experience
Consumer and hardware tech firms such as GoPro, Fitbit (FIT), and Apple (AAPL) are trying to build an ecosystem to improve customer experiences. During GoPro’s 4Q16 earnings call, the firm stated that it wants to make GoPro products central to the smartphone experience. Customer engagement will also ensure repeat purchases, as well as regular product upgrades, and GoPro wants to create an ecosystem that will positively impact user experiences.
GoPro has also stated that it is now moving from being a “capture solution” company to a company that provides an experience as well.
Continue to the next part for a closer look at HP’s prospects going forward.