GoPro is set to conquer the skies with a plan to develop consumer drones that will work with its existing line of rugged action cameras.
The Wall Street Journal cites people familiar with GoPro's plans that the 10-year-old company, which saw its stocks soaring 150 percent when it went public in June, will start selling "multirotor helicopters" strapped with GoPro's own high-definition cameras for anywhere in the range of $500 to $1,000. The drones, however, won't make it in time for this year's upcoming holiday shopping season, as the Journal reports GoPro will make them available "late next year."
The expansion into consumer drones can help GoPro diversify its revenue streams. Although the company has launched a successful line of GoPro accessories, majority of its income still comes from its single core product line of action cameras.
By moving early into the budding drone industry, GoPro can cement its footing in this area, where its cameras are the most popular option for hobby videographers and photographers who like strapping their GoPro cameras to their drones.
The move also comes amid increasing competition on both sides, as traditional electronics companies such as Sony and Panasonic make their own action cameras and the biggest drone makers start coming out with their own quadcopters equipped with their built-in action cameras.
China's SZ DJI Technology and France-based Parrot, for instance, are introducing their own lineups of drones strapped with their own cameras built with optical image stabilization and 4K video shooting capabilities.
Could GoPro, which currently doesn't sell anything that flies, be able to push out a successful drone that can match up to its competition?
Chris Anderson, founder of California-based drone maker 3D Robotics, thinks GoPro can come up with its own drones without having to spend so much on R&D, thanks to the exponential growth of technology pushed by constant development in Silicon Valley.
However, it's not likely that 3D Robotics and other drone makers will continue to make camera mounts designed specifically for GoPro cameras if GoPro decides to go head to head with them in the drone industry.
Colin Guinn, 3D Robotics senior vice president of sales, says he was surprised by GoPro's latest move.
"I'm happy to let GoPro keep making great cameras and we'll keep making great copters," Guinn says.
Consumer drones have exploded in popularity in recent years with the introduction of $300 drones from Parrot launched in 2010. The company says it sold $24.2 million worth of drones in the last quarter, up by 38 percent from the previous period.
Last year, DJI's $1,000 Phantom drones sold a total of $130 million, and the company expects revenue to grow three times this year.
The nascent drone market is expected to balloon in the next 10 years, as aerospace analysts at Teal Group believe the industry will expand to $11 billion by 2024.
Although GoPro is going out against well-established competitors, the drone industry is nothing but saturated. Additionally, the company enjoys a highly respected reputation with a community of loyal followers and a squad of celebrity athletes who can lend their star power to marketing the company's new drones.
