GoPro faces bankruptcy
The once dominant manufacturer of action cameras warns of possible insolvency. GoPro blames this on the rise in memory prices. But the problems go deeper.
The US action camera manufacturer GoPro is facing insolvency: the company warns investors in its latest financial report that «has serious doubts about its continued existence». US companies are legally obliged to do so if they can no longer be certain that they will remain solvent in the next twelve months. Such a warning is a bad sign and can lead to a vicious circle. This is because it increases the pressure from investors and makes fresh capital more expensive. The share price fell by up to 14 per cent at times on Monday.
Source: Michelle Brändle
GoPro clarifies in the press release that it is examining additional financing, new loan agreements or strategic options to avoid insolvency. According to information from documents filed with the US Securities and Exchange Commission, cash and cash equivalents have shrunk to around 50 million dollars. Annual turnover had already fallen to just over 651 million dollars by 2025, resulting in a net loss of more than 80 million dollars.
The acute crisis was triggered by drastically increased prices for memory chips. Manufacturers such as Samsung and Micron are shifting their capacities towards high-bandwidth memory for AI data centres. Standard DRAM for device manufacturers such as GoPro is becoming scarcer and more expensive. According to company information, memory prices have more than doubled in some cases - and in a product category with sales prices between 300 and 500 francs, this can only be passed on to customers to a limited extent.
Competitive pressure from China
At the same time, GoPro's core business is weakening. Demand for classic action cameras is growing much more slowly than a few years ago, with many occasional users preferring to use smartphones. Upgrade cycles for existing customers are getting longer.
In addition, there is competitive pressure from China. Suppliers such as DJI and Insta360 have overtaken GoPro in some important markets. Retail data from Japan shows that GoPro has slipped from a dominant market position to a 19 per cent market share in just a few years. Meanwhile, Chinese manufacturers are launching new models with aggressive pricing and eye-catching functions at short intervals.
GoPro responded with tough cost-cutting programmes for the time being: The Group is selling assets and has been cutting almost a quarter of its workforce since April. A merger or sale of the company is also being considered. However, the future of the brand depends not only on Management - but also on whether GoPro can reach a broad audience again with its products. The manufacturer last tried its hand in the professional segment in April with the Mission 1.
My fingerprint often changes so drastically that my MacBook doesn't recognise it anymore. The reason? If I'm not clinging to a monitor or camera, I'm probably clinging to a rockface by the tips of my fingers.
From the latest iPhone to the return of 80s fashion. The editorial team will help you make sense of it all.
Show all