We’ve seen that GoPro’s (GPRO) 4Q17 revenue fell over 38% YoY (year-over-year) to $335 million. Its gross margin in the quarter ended December 2017 contracted to 25% from 40% in the same period last year driven by retail price reductions in GoPro’s camera and drone products, the company’s exit from the aerial market, and other charges amounting to $95 million.
Revenue for the whole of 2017 was flat YoY at $1.2 billion. In 2017, GoPro’s international revenue rose 4% YoY driven by revenue growth in Asia, which rose 27%.
Average selling price
In 4Q17, average selling price fell 15% quarter-over-quarter to $246 driven by a reduction in product prices. The company shipped 1.4 million units in 4Q17, a rise of 19% quarter-over-quarter and a fall of 40% YoY.
GoPro’s HERO5 Black and HERO6 Black accounted for over 75% of its cameras shipped in 4Q17 and over 84% of its total revenue.
GoPro has an ~80% share in the action camera market
According to market research company NPD, GoPro maintained its share of 80% in the action camera market for the fourth consecutive year. According to GoPro’s chief financial officer, Brian McGee, “In Europe, according to GfK, sales from GoPro represented 69% dollar share and 44% unit share of the Action Camera market. GoPro’s ASPs were on average three times higher than the rest of this market, indicating an opportunity to pursue additional market share is strategically priced products.”