GoPro’s misstep with Hero4 Session pricing leads to job losses

GoPro Hero 4 session hands on lens
Bill Roberson/Digital Trends
Perhaps GoPro isn’t quite as robust as the cameras it sells. On Wednesday, the California company forecast disappointing sales figures for the final quarter of 2015 and said that as a result it’d be laying off 7 percent of its workforce, equal to about 100 jobs.

The action-camera maker had been hoping its latest device, the diminutive Hero4 Session that launched last summer, would prove a hit with consumers over the holiday period. But the $399 launch price proved prohibitive, forcing the company into not one but two price cuts, first to $299 and then in early December to $199. For many potential customers it seems to have been a case of too-little-too-late.

The misstep clearly hit GoPro hard. CEO Nick Woodman said as much in an email to Re/code this week, in which he admitted the company “clearly made a mistake” with the Session’s initial pricing. However, Woodman added, “I’m proud of how we responded. We recognized the problem, price adjusted to $299….recognized that wasn’t enough and price adjusted again to $199 which positioned Session as the best entry-level product we’ve ever made.”

In a statement released Wednesday, the company said that during the opening months of this year it expects to spend approximately $5 million to $10 million on restructuring, though most of that will be on severance costs.

It also forecast fourth-quarter revenue to reach $435 million, down from its October estimate, which put the figure at $500 million to $550 million. Official results for the quarter will be released on February 3.

Recognizing more than ever the need to diversify its business, GoPro is developing a consumer drone that it hopes to get on the market some time this year. So far we’ve only been told the name of its flying machine – the Karma – and shown some of the footage from its on-board camera, which looked, as you’d expect coming from GoPro, pretty darn good.

With all that we know now, 2016 looks set to be a real make-or-break year for GoPro.


2018 was a terrific year for new cameras. Here are our favorites

This year, we saw the unveiling of several exciting new cameras. We look back at our favorite models -- each delivering something unique, yet all are powerful and feature-rich. Camera fans, rejoice!

These are the best action cameras money can buy

Action cameras are great tools for capturing videos of your everyday activities, whether it's a birthday party or the steepest slope you've ever descended on your snowboard. These are the best money can buy.

Chinese court upholds Qualcomm's complaint that Apple infringed on two patents

Apple is following the FTC's lead and has sued Qualcomm for a massive $1 billion in the U.S., $145 million in China, and also in the U.K., claiming the company charged onerous royalties for its patented tech.
Product Review

It's not the sharpest tool, but the Surface Go does it all for $400

Microsoft has launched the $400 Surface Go to take on both the iPad and Chromebooks, all without compromising its core focus on productivity. Does it work as both a tablet and a PC?

A second Wells Fargo glitch results in the foreclosure of more homes

A computer error has struck Wells Fargo once again, resulting in hundreds more homes being mistakenly foreclosed after a first glitch was reported in August. To compensate one customer, the bank sent a check for $25,000.

Samsung partners with AT&T to create a multi-band 5G smartphone for late 2019

Ready to experience a radical transformation in mobile communication? AT&T is launching mobile 5G in cities across the country over the next few months. Here's everything you need to know about the AT&T 5G rollout.

Qualcomm's 3D Sonic fingerprint sensor could make your next phone more secure

Almost exactly a year after the launch of the Snapdragon 845, Qualcomm took the wraps off of its next-generation mobile platform, the new Snapdragon 855. The new chip puts an emphasis on A.I. performance.
Movies & TV

Movies Anywhere service adds Comcast films to its library and devices

Movies Anywhere lets you watch movies purchased from different services all in one place, and it just got even better with the addition of Comcast, which joins Microsoft, Amazon, iTunes, Google Play, Vudu, and FandangoNow.

Can Microsoft’s Airband Initiative close broadband gap for 25M Americans?

A new report from the Federal Communications Commission (FCC) says that 25 million Americans do not have access to broadband internet. Of these, more than 19 million are living in rural communities. Can Microsoft help out?

Amazon scouted airport locations for its cashier-free Amazon Go stores

Representatives of Amazon Go checkout-free retail stores connected with officials at Los Angeles and San Jose airports in June to discuss the possibility of cashier-free grab-and-go locations in busy terminals.

‘Ralph Breaks the Internet’ wins one of the worst box-office weekends of 2018

Wreck-It Ralph sequel Ralph Breaks the Internet stayed on top of the weekend box office for the third week, winning what was one of the worst weekends for ticket sales in the US so far this year.

Google+ continues to sink with a second massive data breach. Abandon ship now

Google+ was scheduled to shut its doors in August 2019, but the second security breach in only a few months has caused the company to move its plan forward a few months. It might be a good idea to delete your account sooner than later.

How to start your online business in 6 simple steps

Making the right choices now can greatly impact your success down the line, and the last thing you want to do is spend your energy revisiting old decisions instead of growing your company.

5G: Why everything is about to change

Curious about the many ways 5G will change and enrich your life? Here’s our guide to all things 5G.