GoPro cut Hero price and will stop drone business

GoPro Inc. has dropped sales and will stop the drone business. The San Mateo-based company said on Monday that fourth-quarter earnings will be lower hit by weak demand for cameras and plan to stop the drone business. The company now expects fourth-quarter revenue of US$340 million, compared with November's projection of US$470 million.

The Wall Street favorite has seen a fall in demand for Karma cameras and drones for several quarters and plans to cut more than 250 jobs while restructuring. The company's shares, which were previously discontinued, have dropped 33 percent to a record low at US$5.04.

GoPro said the drop in drone demand was due to strict regulations in Europe and the United States which would likely reduce market share for drones in the coming years. Morgan Stanley said Hero camera price cuts will make revenue growth more difficult in fiscal 2018.

"Despite significant marketing support, we found consumers were reluctant to buy HERO5 Black at the price one year earlier," said GoPro CEO Nicholas Woodman.

Comments

Alphabet invested $550 million in JD.com

Alphabet Inc. invested US$550 million in JD.com Inc.'s business center as part of the efforts of the Mountain View Internet giant to expand its presence in the rapidly growing Asian market and strengthen Beijing's e-commerce giants in a global battle including the onslaught of Alibaba Group Holding Ltd, Amazon.com Inc., and Walmart Inc.

Both companies describe the investment as part of a broader partnership that will include product promotion in Google's shopping service to help JD.com expand beyond their base in China and Southeast Asia including establishing presence in the US and European markets.

The agreement is an Alphabet effort where the company's main services are blocked in China. Google is boosting investment across Asia where the rapidly growing middle class and lack of infrastructure in the retail, financial, and other areas have made it a battleground for US and Chinese internet giants. Alphabet recently took Go-Jek shares in Indonesia and may also invest…

Bajaj Electricals announced to acquire Nirlep Appliances

Bajaj Electricals announced to acquire the proposed Nirlep Appliances will provide a product portfolio that complements the offer and is a perfect synergistic blend. Agreement to fully acquire Nirlep Appliances cookware for Rs42.50 crore and thereafter be a full subsidiary.

"The Company has proposed to acquire 100% of Nirlep for consideration of Rs42.50 crore, depending on the adjustment of any additional liabilities for the period prior to the acquisition," said Bajaj Electricals.

"The proposed acquisition will provide ongoing business arrangements and other synergistic benefits for the company. It will also give the company exclusive access to the Nirlep brand, sophisticated manufacturing facilities, people, distribution networks, and intellectual property rights," the statement said.

Bajaj Electricals said it has agreed to complete the acquisition of all Nirlep shareholdings in two stages where 80% of the shares will be acquired within 60 days of the agreement a…

Hyundai and Audi collaborate on hydrogen car technology

Tinuku - Hyundai and VW's Audi on Wednesday agreed to collaborate on hydrogen car technology and look forward to improving the energy segment that lags behind the battery electric vehicle. Seoul auto giant wants to increase the absorption of hydrogen cars produced by fuel cells but has been held back by the lack of infrastructure and pressure for battery electric vehicles by Tesla.

The two companies will share access to their respective intellectual property and share components including new parts developed by Audi who are responsible for hydrogen fuel cell technology at Volkswagen Group. Hyundai hopes to create greater demand for vehicles such as the ix35 model and lower costs.

"We want to give component suppliers more opportunities, we want to have competition between component suppliers and will lower costs," said Sae Hoon Kim, head of Hyundai's R & D fuel cell group.

Toyota has praised the benefits of hydrogen vehicles that take less time to refuel than to r…

TINUKU

Search This Blog