Will the Karma be the Death of GoPro?

Last week GoPro recalled all 2500 of its Karma drones because they might randomly lose power and fall to the ground. There’s no doubt that a recall of this magnitude on it’s first attempt at a new market is bad.

Is GoPro doomed because of this? Massive recall. Major embarrassment. Major hit to the brand.

GoPro makes small HD sport cameras and tons of accessories. That’s what they are known for. They are like Kleenex or the defunct Flip camera. Their product name defines the device class. People buy cheap “GoPros” from China. No matter who makes the sport camera, people call it a “GoPro”.

GoPro owns the small sport camera market.

Unfortunately the recall comes shortly after other bad news:

“It was the second negative announcement coming out of wearable camera maker: a few days before GoPro reported declining sales and immense underperformance. Sales were down 40% compared to the same time in 2015.”

Flip died because they saturated the market and never really improved on their product. Other cameras/phones ate up what little market they had. My iPhone 5 was a better Flip camera than Flip ever made.

You can see GoPro trying to break into this new market as well as trying to improve the main thing they sell. That’s great for cameras and maybe even stabilizers, but the drone market is really full right now. it’s very competitive.

When the Karma was announced many people thought it would be “the” $1000-ish drone to buy. It had some cool features and you could take the stabilizer off and use it hand held.

Then DJI dropped the Mavic Pro announcement. And reports  Karmas were having issues started to surface. The reviews of the drone were not great. Drifting, gimbal tilt and other complaints began to circulate.

Turns out, people who buy a drone want it to work as advertised. The stabilizer and ability to use the camera on other things is great, but if the drone doesn’t work right… and now is recalled… It’s bad.

What’s next for GoPro?

According to their website they still plan to sell the Karma after they fix things:

“GoPro is committed to providing our customers with great product experiences. To honor this commitment, we have recalled Karma until we resolve a performance issue related to a loss of power during operation. We plan to resume shipment of Karma once the issue is addressed.”

It’s important to note, this isn’t a “send it in and get it repaired” recall. This is a “return for full refund” kind of recall. This is also a “We will give you a free Hero5 Black for your trouble” kind of recall.

They are serious about getting these back and giving everyone a Hero 5 Black. A free GoPro camera will go a long way to soothe hurt feelings. But it won’t fix the trust issues with the drone. And if the financials indicate the market for GoPro’s main product are slowing, they need a new market fast.

They can’t just fix the Karma, they need a new Karma that’s a “Mavic-killer” out within a year. Or they need some other new product. Otherwise, GoPro might become the next Flip.

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