GoPro Inc (NASDAQ:GPRO) is poised to launch its comeback at an event on Sept. 19 for analysts and investors. At the event, the company is expected to take the wraps off the Hero 5, its first new GoPro flagship camera in two years. Also expected to be revealed is the all-new Karma drone.
Here’s what the leaks, rumors and internet speculation currently point to for Sept. 19.
GoPro Hero 5
GPRO last released a new GoPro flagship camera in September 2014. That was the Hero 4. Since then, the company has pushed out multiple variations on that camera, including the miniaturized Hero 4 Session last summer. Last fall saw the budget Hero+ released. But in the two years since the Hero 4, action camera rivals including Garmin Ltd. (NASDAQ:GRMN) and Sony Corp (ADR) (NYSE:SNE) have been catching up.
Worse, smartphone cameras are getting better while the devices themselves are getting more rugged –the water resistant dual-camera iPhone 7 Plus from Apple Inc. (NASDAQ:AAPL) is a good example.
With growing risk, consumers will ditch action cameras altogether in favor of their smartphones and market competition also heating up, the Hero 5 is a critical release for GPRO.
Leaked images of components and specs have surfaced in the lead-up to the launch. They point to the Hero 5 being waterproof out of the box — no special case required. Image stabilization looks to be in play for higher quality video, as is a slightly higher capacity battery and a new USB-C port. Built-in GPS seems likely.
Control is expected to be via touchscreen, with the possibility of voice control as well. Resolution seems likely to remain at 4K (albeit with a higher frame rate than the Hero 4), but there have been rumors of 8K video support.
GPRO Karma Drone
While the Hero 5 is critical to kickstarting GPRO’s tumbling action camera sales, the Karma drone is the product that’s key to developing a second revenue stream.
For years, drone manufacturers offered gimbals for mounting GoPro cameras. However, leaders like China’s DJI began selling drones with their own action cameras in place of that GoPro mount.
When GPRO announced it was releasing its own quadcopter drone in 2015, the move made sense. In one swoop the Karma drone would prevent the company from being a one-trick pony by expanding beyond action cameras, and it would also serve notice to drone makers that invading its turf would not go uncontested.
While Hero 5 images, specs and even pages from a user manual have leaked, GPRO has managed to keep the Karma drone under tight wraps. Official teaser videos have been posted by the company, but they give little clue to the drone itself, instead focusing on the video footage it shoots.
The best guess is GoPro will stick with what has proven successful and release a quadcopter that’s similar in size and specs to a DJI Phantom. Naturally, buyers would be able to mount their existing GoPro cameras on the Karma Drone, and there would likely be a package deal to buy the Karma and a new GoPro together at a discount.
The Karma drone was originally expected to be released in June, but in May, GPRO announced it was delayed until the holiday shopping season — a move that immediately shaved over 4% off GPRO stock.
The only thing we know is that there’s a lot riding on the Sept. 19 event. A new GoPro flagship camera combined with the Karma drone reveal could help GPRO stage a rally. But if the Hero 5 ends up looking like a minor refresh or the Karma is priced too high to attract the interest of anyone but hardcore drone enthusiasts, GPRO’s big day may end up being a rough one.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
