This past Friday, GoPro released its 1st quarter of 2016’s numbers, and they weren’t pretty since they testify the company had a bad start. Following that announcement, GoPro also stated that their drone, the Karma, is waiting for a delayed launch that will happen this winter.
Financially speaking, GoPro isn’t having a very good time since last winter as its revenue dropped thanks to their competitors and the sales numbers that have been going down. Together with this, the stock price is also declining, and the iconic GoPro Hero’s manufacturers had to cut down their product line.
The cutback seems to be responsible for the delay of the Karma, the new drone to be released, and in this week’s earnings report, the corporation pushed its launched to late 2016, which the officials state was a hard decision that comes with a positive side – the fact that sales will benefit from the Holidays.
GoPro’s stock prices have dropped to $9.81 this Friday, a 7% drop which makes the overall declining number for this year on stock prices to be of 44%. The company also announced that the revenue dropped 49.5% when you compare it to the same quarter the year before, driven by the costs associated by discontinuing brands and the lower anticipated sales.
It makes sense for the company to delay the launch of the Karma drone, since drones are a really popular product during the Holidays, and GoPro wishes to get the losses back later this year, but the brand’s financial situation allied with this delay means that another 6 months will elapse before a product that seems to be the life saver even to generate income.