A harsh reality has hit GoPro smack dab in the kisser recently. And it was one that was fairly easy for pundits to see coming for the maker of arguably the first action sports camera: namely that smartphones can do nearly as much as the POV devices while acting as a small, hand-held computer.
Appearing on CNBC, GoPro CEO Nick Woodman opined as much: “Where we fell out a little bit in our post-IPO years was that we failed to make GoPro contemporary and failed to align with the smartphone movement,” he said.
With GoPro stocks selling at a seemingly low $8.50 per (now’s the time to buy as we wouldn’t bet against the company in the long run), GoPro will let 270 employees go, according to Woodman. This comes after serious setbacks in 2016 that included the failed release of its drone (which had to be recalled). GoPro is also facing increased competition that includes companies like Sony making a run at the innovative camera, not to mention smartphone brands and subsidiaries constantly working to invent cases and other accessories that enhance picture quality. But the news wasn’t all bad for GoPro.
“Sales are good,” Woodman said. “It’s all good signs that we are improving our business, and that’s something we intend to build on throughout the year.”