Will Xiaomi's New Action Camera Threaten GoPro? Analysts' Weigh In

 | Mar 03, 2015 08:23AM ET


Shares of action camera company, GoPro Inc (NASDAQ:GPRO), tumbled down 5% in trading on Monday, March 2nd after Chinese smartphone company, Xiaomi, launched a similar product called the Yi Action Camera.

The Yi Action Camera has a 16-megapixel camera and can record high-definition videos at 60 frames per second, whereas the GoPro Hero only has a 5-megapixel camera and records high-definition videos at just 30 frames per second. In addition, the Yi Action Camera supposedly comes with more storage and weighs less than the GoPro Hero. While the low-tier GoPro Hero retails around $130, the Yi Action Camera costs about half the price at $64, or 399 yuan.

However, the Yi Action Camera is currently only sold in China and does not have any plans to expand sales internationally. Despite this, GoPro investors are more worried that this will hinder the company’s sales strategy in Asia.

Following the drop in GoPro’s shares, Northland Securities analyst TipRanks is Hold.

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TipRanks

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