GoPro Decides to Recall 2,500 of its Recently Launched Karma Drones
GoPro has decided to recall about 2,500 units of its Karma drone that was launched in September. The company said it decided to recall the new drone after finding power loss issue during operation in some units. The company also revealed the refund program for consumers who can return the product for immediate refund.
The $799 Karma drone was launched amid weak demand in the market. The firm was also struggling to grow sales due to stiff competition from cheaper devices. Since October 23, the company has sold only about bout 2,500 drone units.
“We have recalled Karma until we resolve a performance issue related to a loss of power during operation,” the company said in a statement.
“We plan to resume shipment of Karma once the issue is addressed.”
GoPro Founder and CEO Nicholas Woodman said their top priority is safety of customers. Woodman also revealed that company is coordinating with both the U.S. Consumer Product Safety Commission and Federal Aviation Administration.
“We are very sorry to have inconvenienced our customers and we are taking every step to make the return and refund process as easy as possible.”
According to GoPro, no injuries or property damage have been reported due to power loss issue.
After announcement, shares of GoPro fell by 7% in extended trading.
Just last week, GoPro had reported a third-quarter loss and said it experienced a 40% year-on-year slump in revenue. Now this recalled is definitely a big setback for the firm which attempts to challenge leader DJI in the drone business.
GoPro, Inc. was originally founded as Woodman Labs, Inc, by Nick Woodman in 2002. Woodman established the company after his 2002 surfing trip to Australia where he wanted to capture high-quality action photos, but failed to get such pictures because he could not get close enough. He realized that it is difficult for amateur photographers to buy quality equipment at reasonable prices, and therefore founded Woodman Labs to build camera system that could capture the professional angles. In 2004, his company started selling its first camera system, which used 35 mm film. After a few years, the company introduced digital still and video cameras.
In 2012, Woodman, Inc., changed to GoPro, Inc. Today, this American company specializes in building eponymous action cameras. GoPro also creates its own mobile apps and video-editing software. In 2014, the company was manufacturing a fixed-lens HD video camera with a wide 170-degree lens. In 2016, GoPro launched its first quadcopter drone – Karma.
The GoPro Karma is GoPro’s consumer drone. In 2014, GoPro approached DJI and discussed the possibilities for building a private label model that will be launched with the GoPro branding. After these discussions failed, GoPro signed an agreement with 3D Robotics, and when 3D Robotics failed to meet their expectations, GoPro decided to take full control of the development process in mid-2015.