Bidness ETC - GoPro Hero 4 Price Likely To Drop

GoPro needs to drop the price of Hero 4 Silver to attract buyers.

GoPro Inc. despite being known for in the consumer industry as an action camera manufacturer seems to be stumbling with finances recently. The company has recently reported a loss that exceeds almost a quarter of their net worth in the start of the fiscal year of 2015. One of the reasons behind this shortcoming is that they are expected to launch the GoPro Hero 5. Irrespective of that, there has not been much movement by them in the market.

As reported by some of the experts, GoPro needs to take some big steps that will allow them to sustain in the industry. One of the things that can contribute positively to their portfolio is by slacking the price of Hero 4 Silver. GoPro sales have halted, so this might just be a fairly smart move for them. The company products have succeeded in gaining traction where the Hero brand has done relatively well. So if they cut down on the prices, then they are likely to gain more consumers.

So now if they actually do this, then in the long term they might just benefit. For instance, those who have previously not used a GoPro device then by buying a slightly reduced price Hero 4; they can actually realize the potential of this range and might just develop interest in buying Hero 5. Moreover, the device is relatively old, so reducing the price won’t harm them but will get the interest of those who don’t wish to spend so much.

Moreover, Sales of Hero 4 have been declining on a steady pace merely because those who wished to get hands on the device have already bought it. Only those who are skeptical about the price are left to be attracted.

The company need not reduce the price of all Hero 4, but the Silver version is fairly reasonable than Black with limited features. Thus, this might be the right choice in terms of cutting down the prices. This would also allow them to scrutinize if it actually helped them in terms of money or not.

In case they realize that this actually turned out to be good for them, then they can obviously reduce the prices of Hero 4 other models to embrace the change. At this point, they won’t lose anything by experimenting and this might again start to stream in revenues for them.

Hence, GoPro now needs to make its mind whether it wants to have a stumbling quarter again or have some progress to boast of until Hero 5 is launched.