GoPro has announced a 20% drop in sales in the first quarter of 2023, the company’s first loss in the past two years, with a loss of $29.9 million in the first quarter, a loss of 19% per share, and revenue of $174.7 million, down from $216.7 million in the same period last year.
As a result of the plummeting sales, GoPro recently announced that it has adjusted its pricing strategy to mid- to late-2020 pricing levels for all of its product lines.
▲ Photo source GoPro official website
GoPro said that the price of most models will be reduced by $50 to $100. For example, the flagship Hero11 Black will be priced at $399.99, down from $499.99. GoPro has also decided to restructure its pricing system, reducing the price of the GoPro Subscription Service to $24.99 for the first year of subscription and setting the price for the next year of renewal at $49.99. It also eliminates the discounted privileges previously available to GoPro subscription service subscribers and now allows anyone to enjoy the discounted privileges at no cost.
The price cut also had a negative impact on GoPro’s stock, which fell about 6% after the bell on Tuesday. So far this year, GoPro’s shares have fallen more than 11.7%.
Nick Woodman, GoPro’s founder and CEO, said, “We were forced to raise prices under the challenges of the previous epidemic, but now that those pressures have eased, we’re excited to make GoPro’s great performance available to everyone.”
In addition to the price reduction, due to GoPro’s focus on selling products to users on the web during the epidemic. GoPro executives at the moment also want GoPro products back in the retail channel, so efforts are underway to contact retail stores for this purpose.
The company founded by Nick Woodman, specializes in the development and production of high-definition video recording equipment and sports cameras for extreme sports, its latest product HERO 11 Black / Back Mini released on September 14, 2022, and was priced at RMB 3498 and RMB 2998 respectively.