Apple May Be Working on GoPro Competitor
In early January, popular wearable camera maker GoPro got a major scare, and it had nothing to do with its actual product. The company had been without major competition since first introducing its product in 2005, dominating the market of outdoor sports enthusiast and amateur film makers.
GoPro’s market domination waivered this January, and it didn’t even need an announcement. Instead, the breaking news that Apple had applied for several dozen patents for mounted digital camera systems was enough to send GoPro into a frenzy. Within hours of the announcement, the company’s stock plummeted to below $50 per share for the first time since 2014.
Should GoPro be worried?
Probably. When an industry giant like Apple prepares to enter your market, you may not want to panic yet, but you should definitely pay attention. Definitely sit up straight and pay attention if that industry giant is known for innovation and its patents “specifically note ‘weaknesses’ in GoPro’s devices
When GoPro went public last May, they admitted that a major risk factor was the fact that almost all of its revenue comes from one product line, its wearable outdoor HERO camera, and that any competition in that line could seriously threaten the company. At the same time, the mere application and granting of patents does not guarantee Apple’s entry into the market, and even if it would, that entry would still likely be years away.
That’s plenty of time for GoPro to keep innovating and diversifying, taking advantage of a market it still largely dominates. And while the dropping stock prices show some worry over this news, it is worth noting that the current price is still almost twice as high as its IPO price last May.
Still, anytime Apple enters a new technological arena, that development is worth monitoring.