Will Apple Eat GoPro’s Market Share?
Apple is now so huge that it can enter almost any market and be successful, effectively eliminating the established competitors in the market. Earlier this week, GoPro experienced a downfall in its shares fearing that Apple might jump into the market of action cameras.
The speculations arose from the patent that was awarded to Apple. The patent was about a remote controlled digital camera that could potentially be worn. This generic description was enough to make GoPro worry about Apple.
However, we don’t think Apple plans to take over GoPro in action cameras market.
First, action cameras are not mainstream and Apple prefers to target markets that are mainstream. Only a handful of consumers use (or want to use) action cameras and whether or not these cameras carry potential of becoming mainstream is still debatable.
Wedbush Securities analyst Michael Pachter believes that GoPro is on its way to becoming mainstream. It has attracted a number of photographers and it can go on to attract athletes, scientists, and sportsmen to shoot videos.
On the other hand, others such as Morgan Stanley analysts James Faucette, Yuuji Anderson, and Meta Marshall believe that an average consumer will never use action cameras because it has its complexities.
These analysts spent 8 hours putting together a 2-minute video. They found the editing process difficult and the final video was largely unwatchable.
The point here is that it requires the amount of knowledge of creating and editing videos that an average consumer doesn’t have. While extreme-sports athletes make many GoPro videos that go viral, an average athlete is unable to capture breathtaking footage and present it in a professional manner.
But it doesn’t mean GoPro doesn’t carry the potential to grow. If they could be able to make the editing process simple and adopt growth strategies (which they already have like broadcasting livestreams), they might become one big company. At this point, GoPro’s target is too small for Apple to focus on.
Apple has filed and received patents in the past that never came to reality. The Cupertino company masters in focus and depth. They do not do every other thing that becomes popular. Here is a quote of Steve Jobs that Tim Cook often talks about:
People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying no to 1,000 things.
Moreover, the patent can also be related to Apple’s plan to integrate it into its iPhone or Apple Watch. The company has been moving away from standalone products like iPods towards products that offer many functions. It is possible that this “remote controlled digital camera that could potentially be worn” will be seen in next Apple drone or a wearable product.
But GoPro is safe from Apple at this time.