GoPro Hero priced at $199
GoPro (GPRO) launched a new Hero camera in March. It’s priced at $199 and comes with a 2-inch touch display. The device is waterproof up to 30 feet, and GoPro claims it is extremely durable. The device is targeted at demographics, including adventurous social sharers, travelers, and kids.
Meghan Laffey, GoPro’s vice president of product, stated, “HERO is a great first GoPro for people looking to share experiences beyond what a phone can capture. HERO makes it easy to share ‘wow’ moments at a price that’s perfect for first-time users.”
GoPro Hero is integrated with the GoPro mobile application where videos and photos can easily be uploaded. Users can also take advantage of the GoPro Plus subscription service at $4.99 per month and include features such as cloud back-up, damaged camera replacement, and a 20% discount on accessories.
Will this product result in incremental sales?
In the above graph, we can see that GoPro shipped ~4.8 million units in fiscal 2016. Shipments fell 10% YoY (year-over-year) to 4.3 million units in fiscal 2017. Consumer technology companies GoPro, Garmin (GRMN), Fitbit (FIT), HP (HPQ), and Canon (CAJ) launch new products regularly in order to attract existing users and generate a new customer base.
GoPro expects to stall this decline in device sales with its entry-level camera. It believes that given the right price point, customer demand for its products will increase. GoPro expects its 1Q18 sell-through rate to be similar to 1Q17’s rate due to price changes and a 50% rise in marketing spending.
On April 18, GoPro launched its TradeUp Program where customers in the United States can trade a previous-generation GoPro camera or any digital camera for one of GoPro’s latest products. Customers will receive a discount of $50 for the HERO6 and $100 off the Fusion as part of the program.
An earlier program was launched in 2017 for a 60-day period, and almost 60,000 customers participated in the promotion.