Iconic action camera company GoPro is struggling

In 2002, Nick Woodman, eager to find a better way to capture footage of himself surfing, envisioned a device that could help anyone get just the right angles to “go pro” (or, at least, look pro). What debuted 2 years later at a trade show, called the HERO camera, went on to become an essential in every weekend adventurer’s travel bag. Indeed, over the coming years GoPro became synonymous with action cameras, not unlike how brands like Post-it Notes and Band-Aids cornered the mindshare for their respective categories.

But, GoPro’s fortunes are fading fast. On Monday, the company announced a 15% reduction in its workforce as part of a broader restructuring effort to curb costs and navigate an increasingly challenging market.

A decade after its initial launch, GoPro hit its peak valuation of $12 billion. Today, the company is worth a tiny fraction of that, some $200 million, with its stock down 65% in the last 12 months. The latest quarterly results offered no respite, with revenue down 23% from the previous year and operating expenses climbing by 5%.

HERO to zero?

It’s easy to blame the advent of better smartphone cameras for GoPro’s troubles, and they have certainly contributed to its decline, but cheaper knock-offs and competition have arguably played a bigger part, with GoPro’s revenue falling fairly consistently despite occasional boosts from new product launches. The influx of copycat products has even grabbed the attention of the U.S. International Trade Commission, which in May announced plans to investigate patent infringements against GoPro’s products.

Interestingly, some users on Reddit blame something else for GoPro’s financial worries: building a product so good that you only need to buy it once.