I bought a GoPro a couple years ago because I was considering buying the stock as it was about to be listed. Took it on a ski trip. It was one of the worst pieces of consumer electronics I've ever used. Just atrocious. It seems they took every wrong turn possible whenever faced with any design decision. I avoided the stock but should have shorted it.
GoPro shows its vulnerability after horrific Q3 earnings
201–210 of 217 posts
Re: GoPro shows its vulnerability after horrific Q3 earnings
#202Earlier quoted context omitted.
I think GoPro suffers from two problems. 1. Many people buy these camera's that never use them, or use them a few times but realize editing videos takes longer than they hoped it would. So after a while of non use, they sell the camera. 2. They built a good product, one that lasts and is therefore good for the used market. People are comfortable buying a used GoPro because they know it's rugged and well built. So GoP…
So GoPro's have a good resale value and therefore many people that might normally buy a new one, instead turn to the used market which doesn't help GoPro at all. That's not necessarily true. The counterargument is that having a good resale value allows you to charge more for your new sales because of the added value.
That counterargument only flies when sellers are repeatedly selling to get yet another upgrade. First time buyers rarely think about resale value.
But giarc's point wasn't so much about resale value (despite his claims of the opposite), it was about an active second hand market due to (1) confused first time buyers and (2) a reputation of ruggedness.
It basically boils down to: more people buy gopros than there are people with a real usr car for them, this is why the second hand market exaggerates market saturation effects more than usual.
Re: GoPro shows its vulnerability after horrific Q3 earnings
#203I try not to generalize personal experience to a company's stock price. But in GoPro's case I'm picturing a bunch of folks like me who bought one, and then swore to never again buy anything with GoPro's name on it. And those people tell their friends who are considering an "action camera". So you end up with a segment of customers from whom you'll never extract another dime, plus all of the people who might have boug…
Same for me and my brother. Stupid proprietary application for file transfer and editing. Extremely confusing model line. Crazy expensive assessories. Never again.
Re: GoPro shows its vulnerability after horrific Q3 earnings
#204Earlier quoted context omitted.
If only they made crappier products that break more often, at least then their stock shareholders would think it's a good company. This exemplifies everything that's wrong with capitalism and planned obsolescence.
Leica cameras have always been quality products and that didn't hurt them at all. A Leica will last forever.
But Leica as a company would have never reached the valuation Gopro enjoyed (and now suffers from, we would not have this conversation if the Gopro brand had not inspired unrealistic expectations)
Re: GoPro shows its vulnerability after horrific Q3 earnings
#205So, I'm starting a VR project that's going to need 180-degree (or thereabouts) stereoscopic video. Ready to spend money on cameras and actually get started. "Cool! This should be straightforward, everyone uses GoPro cameras for that, so a I'll need to buy two GoPros!" was my immediate thought. All ready to give GoPro my money. Oh, but they dropped stereo genlock after the 3+..... wait what?!?! VR filmmaking is one of…
Kind of related: 360 real time stitched video http://www.argondesign.com/products/argon360/
Re: GoPro shows its vulnerability after horrific Q3 earnings
#206Earlier quoted context omitted.
So GoPro's have a good resale value and therefore many people that might normally buy a new one, instead turn to the used market which doesn't help GoPro at all. That's not necessarily true. The counterargument is that having a good resale value allows you to charge more for your new sales because of the added value.
That counterargument only flies when sellers are repeatedly selling to get yet another upgrade. First time buyers rarely think about resale value. But giarc's point wasn't so much about resale value (despite his claims of the opposite), it was about an active second hand market due to (1) confused first time buyers and (2) a reputation of ruggedness. It basically boils down to: more people buy gopros than there are p…
I think you don't understand the point which I consider to be whether GoPro's profits are helped or hurt by a robust market for their used products.
Whether or not GoPro generates more total sales as a result of their products' value in the used market, they are able to charge a higher price for new sales because of it.
It may be that the higher price does not offset sales competition from used products, but that is another question.
Re: GoPro shows its vulnerability after horrific Q3 earnings
#207Re: GoPro shows its vulnerability after horrific Q3 earnings
#208Meh, I am buying some shares of FitBit and GoPro tomorrow as either could get acquired or bust, but at > 25% discounts i'll take that risk as the potential upside is too good to miss. Purely speculation on my part
And their new product looks great. For the first time I lust to upgrade my Hero 3+.
everyone has a hobby -- i trade stocks and have done pretty good for myself. They both picked up a few percentage points from their after-earnings lows. Either they get bought, go kaput, or soar again a-la AMD in their most recent restructuring (selling HQ and leasing it back, paying down debt,etc.); either way I win: I win because this is fun, and I win if the shares rise.
Re: GoPro shows its vulnerability after horrific Q3 earnings
#209I try not to generalize personal experience to a company's stock price. But in GoPro's case I'm picturing a bunch of folks like me who bought one, and then swore to never again buy anything with GoPro's name on it. And those people tell their friends who are considering an "action camera". So you end up with a segment of customers from whom you'll never extract another dime, plus all of the people who might have boug…
The ui sucks..
Re: GoPro shows its vulnerability after horrific Q3 earnings
#210Earlier quoted context omitted.
What is it about capitalism that makes the strategy you describe a) inevitable, and b) worthy of regulation (since you brought that up)? The profit motive covers (a).
A company that built lasting products of high quality wouldn't earn profits? Hmmmmmm[0] [0] https://www.google.com/finance?q=NASDAQ%3AAAPL&fstype=ii&ei=...
Nothing in the profit motive prohibits Apple's success, no. Apple certainly pays attention to its margins and how to increase them, it's just that they're not afraid to do it with price. However, and this can't be the first time you've seen this, but brands and their products are routinely downgraded in quality over time, particularly after acquisitions. Have you seen a Bell & Howell product line lately?[1] See also: Converse Chuck Taylor and Doc Marten shoes.