GoPro will stop selling drones once remaining Karma inventory is gone
The GoPro woes continue with the release of the company's preliminary Q4 2017 earnings. To little surprise, the company announced it will leave the drone market once it sells off its remaining inventory of $799 Karma drones.
"Although Karma reached the #2 market position in its price band in 2017, the product faces margin challenges in an extremely competitive aerial market," the report states. "Furthermore, a hostile regulatory environment in Europe and the United States will likely reduce the total addressable market in the years ahead. These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory. GoPro will continue to provide service and support to Karma customers."
While the Karma drone was ultimately popular, it had a rocky launch. After debuting in October 2016, GoPro recalled the drone in November 2016 after a number of them "lost power during operation." The Karma was the company's first (and only) drone, made to leverage the company's action cam expertise in an aerial device to challenge DJI. However, technical difficulties for both users and GoPro, in addition to the company's financial woes, seem to have led to the Karma's demise and GoPro's abandonment of other drone aspirations.