Fall in average selling price
Between 2Q16 and 2Q17, GoPro’s (GPRO) average selling price (or ASP), fell 4% YoY (year-over-year) to $279.50 from $290.90, driven by higher unit shipments of its HERO Session cameras, lower accessory revenue, and its product mix. GoPro expects its fiscal 2017 ASP to be higher than that of fiscal 2016. GoPro’s ASP fell despite its Karma drone being priced at $799.99. In 1Q17, GoPro’s ASP rose 13% YoY and 25% quarter-over-quarter to $295.40.
As we’ve discussed, GoPro’s operating expenses fell 36% YoY to $116.5 million from $182.9 million in 2Q16. Its operating earnings rose to -$9.3 million from -$89.3 million.
According to GoPro, its premium camera, the HERO5 Black, was rated the best-selling camera in the United States (SPY) for a third consecutive quarter. GoPro’s Karma drone was the number-two-selling drone in the country. GoPro has now sold over 26 million cameras since the launch of its HD HERO camera way back in 2009.
During the company’s 2Q17 earnings call, CEO Nicholas Woodman stated that “our second quarter performance capped a strong first half of the year for GoPro, where brand engagement, consumer demand, and sell-through of our products were better than expected.”