An article in the UK Amateur Photographer caught my attention in the last few weeks. The article entitled, DSLR price wars make dent in CSC sales (update), quotes Futuresource market analyst Arun Gill. In the report about the UK market for cameras he says
We believe that a more rapid uptake of CSCs is likely to be inhibited by a positive perception and preference towards the DSLR format and the key brands in this segment, respectively, particularly among entry-level users
This is clearly aimed at Canon and Nikon and their unwillingness to launch CSC's that will will compete with their Professional level DSLR's. My question is, Why should they? If lack of Pro level CSC's give the perception that they are inferior, maybe they are. Perhaps it's just that photographers in general don't share the current photo press infatuation with Mirroless CSC's.
GoPro shares took a tumble with their latest announcement on Q4 2016 Holiday Sales that were way below expectations. They also announced a restructuring with a 7% cut in their workforce with a one off cost of between $5M-$10M. Not good as competition continues to grow from established companies such as Sony, Nikon and TomTom.
So how bad is it? Well Q4 revenue estimates at $435M where anlaysts had predicted $512M and full year at $1.6B as apposed to $1.69B. That is quite a miss in itself but other problems face GoPro.
The ticket price of the Hero 4 action camera was slashed from $399 to just $199 to clear stocks over the holiday period. This suprises me as I experienced a lot of interest in the cameras over this period. Perhaps turning interest into hard sales is the failing.
Looking to the future the Hero 5 has been delayed as the product looks to expand its horizons. Talk of making it more useful with drones and virtual reality may help this. Although my own thoughts are that the use of drones themselves will be heavily curtailed by regulation and ligislation over the next few years. Worries about misuse are starting to stack up.
So what do the markets think of GoPro today? Stock fell to a low of just $11 today before pulling up to over $12. That is a long drop from the high of $87 in Oct 2014. Lets hope that new products and diversification can help GoPro to grow.
Canon Inc the digital imaging specialist has lowered its full-year earnings forecast. The reasons given were slower-than-expected demand for digital cameras in China and Southeast Asian countries. Sales of office printers, laser printers and ink-jet printers were also slow in Asia.
Sales of Digital Cameras have been slowing down over the last few years with the advances in smart phone imaging being blamed. This has been an ongoing problem that had been stabilising recently but the Asian slowdown has exacerbated the problem. See the series on the Digital Camera Market Report - 2013 on