Effects of Recession
- Loss in stock value
- Gross margin, net income, and operating income decreased from last year
- Recession motivates ingenuity for survival
- GoPro created 3 new projects to be released this year
These negative effects can be seen in GoPro’s gross margins, operating income, net income, and value per share, as they are all down from last year. Gross margin has declined 3.4% from last year, Operating income had decreased 70.7%, net income is down 71.8% and income per share is down 72.8%. These effects can be contributed to the current recession. GoPro has begun to spend more money on new products hoping upcoming releases will help bring the company into the black. Although GoPro has begun to underfunded their advertising to reduce cost but have created an even further decline in sales.
GoPro’s total revenue in 2015 is up 16.2% from 2014, with it expected to rise soon as 45% of annual revenue comes in ladder quarters where Christmas and holidays provoke purchases
These tough times have called on the research and development of GoPro to excel for the survival of their company and GoPro has announced the new release of Karma, New drown compatible with GoPro cameras, the Hero 5, newest edition of their small, portable, Bluetooth enabled camera line, and the Omni, new virtual reality production camera holder and software. The Omni is able to capture video and create virtual realities.