GoPro's Upgrades To Karma Play To Its Strengths

GoPro Inc (NASDAQ: GPRO) unveiled upgrades to its cameras, Hero5 Black and Hero5 Session, as well its Karma drone, more user friendly software through Quik apps, a hand-held gimbal and GoPro Plus services.

“The Karma Drone impressed with solid industrial design and build quality. Existing GoPro users can find new purposes for their old devices by getting the $799 Karma without a camera,” said Oppenheimer’s Andrew Uerkwitz.

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Combined with the company’s cameras, the Karma drone offers mainstream prosumer drone features, such as 4K video, intuitive remote control and 3-axis gimbal for image stabilization.

The drone is expected to be available on October 23, under three pricing tiers, $799 with no camera, $1,000 with the Hero5 Session, and $1,100 with the Hero5 Black.

Upgrades Play To Its Strengths

“GoPro added many refined, thoughtful details—convertible gimbal, touch-screen embedded remote controller, foldable frame with protective backpack—that remove many frictions of piloting a consumer drone,” the analyst stated.

Uerkwitz noted that the camera upgrades included peripheral improvements and “nice-to-have” features, while the new software and services aim to work well with hardware upgrades to help manage videos more easily.

“We see welcome upgrades that play to GoPro's strengths and appeal to core users. We believe GoPro keeps executing on a focused strategy that results in what we see as the strongest product portfolio it's ever had. However, concerns over the structural decline of its addressable market keep us on the sideline,” the analyst added.