Chris Lau
3
All posts from Chris Lau
Chris Lau in Value Stocks,

DJI Goes Head to Head Against GoPro’s Karma

DJI’s release of Mavic Pro should not worry GoPro (GPRO) shareholders. The drone is $200 more than GoPro’s Karma and lower awareness; GoPro’s stock should hold its uptrend on the stock market.

DJI’s brand is not as well-known as GoPro’s. The action camera maker has a loyal user base. Pitching the Karma as the worthy upgrade will lead to strong sales for the Karma. DJI does tout “follow me,” a feature Karma does not have, but it is unreliable. GoPro made the right decision excluding that feature on the Karma. Karma includes a handheld remote, while DJI requires a smartphone.

Despite GoPro’s advantages, DJI’s Mavic is portable and lasts at least 50 percent longer than the Karma. The Mavic costs $1000 and runs on an impressive 24-core processor. Mavic’s follow-me is reliable, too. Its collision avoidance will prove a good feature that GoPro’s Karma lacks.

Related: Ambarella (AMBA) benefits as GoPro's sales grow.

Takeaway

This holiday season’s sales of Karma is a make or break event for GoPro. If sales are weak, DJI will take more of the drone market share. Consumers may simply decide to wait for a version 2 of Karma before buying the drone. Conversely, GoPro has a global distribution and consumers know the brand. Advertising Karma will only build awareness and boost sales.