Home Gadgets GoPro CEO Still Sees Growth in China, Despite Economic Slowdown

GoPro CEO Still Sees Growth in China, Despite Economic Slowdown

GoPro Chief Executive Officer Nick Woodman still sees China as an important market and growth opportunity for the action camera-maker, despite an economic slowdown in the world’s second-largest economy.

“China was more challenging last year but we still managed to grow 2 percent,” Woodman said in an interview with Bloomberg TV Thursday. “We have sales and marketing offices in China and operations as well – it’s an important hub for us.”

Sales from the Asia Pacific region are a boon for GoPro, with growth rates in Thailand, Korea and Japan running several times faster than in China, where consumers have cut back on purchases of everything from iPhones to air conditioners. Gross domestic product in the final quarter of 2018 rose at the slowest pace since the global financial crisis, amid a trade fight with the US that continues to drag on.

To avoid potential tariffs, GoPro is moving most of its US-bound camera production out of China. Starting in the second quarter, that production will shift to Guadalajara, Mexico. Woodman said even without tariffs, the company would save money with the move.

“China is getting more expensive to do business in,” Woodman said. “There are some cost benefits to moving some of our production to Mexico. There’s supply chain benefits.” Woodman added that “Malaysia was a consideration, but at the end of the day Mexico’s got terrific infrastructure.”

On Wednesday GoPro reported net income, excluding certain items, of $42 million (roughly Rs. 300 crores), snapping several consecutive quarters of losses. Sales jumped 13 percent to $377 million (roughly Rs. 2,700 crores), exceeding analysts’ estimates of $374.3 million. The company has been trying to generate revenue from a GoPro Plus subscription service that automatically uploads pictures and video footage to an account online. GoPro now has 199,000 active paying subscribers, up more than 50 percent from a year earlier. Woodman said the software service is already having a meaningful impact on GoPro’s gross margins.

© 2019 Bloomberg LP

Source link

Vishal Kumarhttps://visionaryblogs.com/
Hi..I'm Vishal Kumar I am currently study MCA from IGNOU. Web Development and Designing is my passion and I believe in helping people with my abilities and knowledge. I am learning these things from last 8 years and it feels like learning is a part of my life. Now, which makes this experience even more interesting. Feel free to reach out to me at https://visionaryblogs.com/ Have a nice stay here!


Please enter your comment!
Please enter your name here

- Advertisment -


Poco X2 Starts Getting Android 11 Through MIUI 12.1 Update, Comes With January 2021 Security Patch

Poco X2 has started receiving MIUI 12.1 that brings Android 11, Poco India confirmed to Gadgets 360. The update comes nearly six months...

Samsung Galaxy M12 With 6,000mAh Battery, Quad Rear Cameras Launched in India: Price, Specifications

Samsung Galaxy M12 has been launched in India. The phone has a large 6,000mAh battery and is powered by the Samsung Exynos 850...

Tiger Shroff To Romance Two Actresses In Vikas Bahl’s Ganapath: Report

News oi-Madhuri V | Updated: Saturday, January 30, 2021, 19:11 ...

Google Play Allows Gambling, Betting Apps in 15 New Countries Including US, Canada, and Australia

Google Play has updated its policies to allow gambling and betting apps in 15 more countries, including Australia, Belgium, Canada, Germany, and the...