GoPro (GPRO) Stock Declined Today on Threat From Xiaomi's New Yi Action Camera
NEW YORK (TheStreet) -- Shares of GoPro (GPRO) - Get Report closed down 4.88% at $39.93 today after the Chinese company Xiaomi launched the Yi Action Camera, a waterproof portable camera to rival GoPro, the Wall Street Journal reports.
For now, the camera is available only in China, but at about $64 the new camera is less than half the cost of the cheapest GoPro, the entry-level GoPro Hero that costs about $130.
The Yi Action Camera has a 16 megapixel camera and can record high-definition video at 60 frames per second, Xiaomi said.
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That's better than the GoPro Hero's 5 megapixel camera and video recording of 30 frames per second, the WSJ notes, adding the camera is also waterproof, up to 40 meters underwater, just like GoPro's.
One analyst already warned that the new camera could pose considerable competition in the coveted Chinese market.
"This really puts the kibosh on GoPro's strategy for Asia and China in particular," Oppenheimer's Andrew Uerkwitz said last week on CNBC.
China expansion is already in the works at GoPro. Woodman said that in mid-January the company took their first steps into China with the countries two largest web retailers, Tmall and JD, as well as with select off-line retailers.
"We are happy with the initial sales results in both online and off-line channels and see positive indication that GoPro has the opportunity to succeed in China, one of the world's largest consumer markets. In 2014, over $0.5 billion of our revenue came from outside of the Americas. We see international expansion as a key part of our revenue growth strategy going forward," CEO Woodman said.
In the first quarter he anticipates revenue from their distribution channel will be "particularly strong and geographic strength in both EMEA and APAC regions."
The company currently anticipates revenue of between $330 million and $340 million for the first quarter, representing a year-over-year increase of approximately $100 million, or 42% at the midpoint of the guidance.
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