Apple patent could threaten rival GoPro
GoPro shares fell 12 percent following reports of Apple patenting a new wearable action camera, demonstrating the giant’s power to influence the market
Under threat: a new patent, reported to have been developed by Apple, could allow them to develop a waterproof camera system that could directly challenge GoPro
Patently Apple, a blog which chronicles the tech giant’s patent history, reported that Apple had been granted a new patent to develop a waterproof camera system that “could directly move into GoPro’s territory as the patent specifically mentions the weaknesses of GoPro devices”.
The news is widely believed to have driven a plunge in GoPro stock, which saw shares fall by 12 percent, or $6.91, to $49.87. That’s around half of its record-high 2014 price of $98.47 (although it’s still substantially up from its June 2014 opening IPO price of $28.65).
The news is widely believed to have driven a plunge in GoPro stock
The patent itself – which was bought from Kodak in 2012 – talks of a camera that could be attached to bike helmets, scuba masks, motorbike handlebars and other objects for on-the-go filming. According to information published by Kodak in 2013, the digital camera would be controlled from a remote worn on the wrist.
But Apple Insider claimed there was no guarantee the patent would see the company actually develop an action camera, arguing that the technology could be used for existing products, such as the Apple Watch.
JMP Securities analyst Alex Gauna was likewise weary of jumping to conclusions, telling Reuters: “It does not seem to me that launching an action camera accessory is the most logical product extension for Apple to pursue right now.”
But that hasn’t stopped concern rising among GoPro investors, demonstrating the power Apple has a market influencer. The company has until now managed to fight off competition from rival Sony action cameras, but given Apple’s current dominance in the tech sphere it’s not unrealistic to believe its own version could threaten GoPro’s monopoly.
If the patent does see Apple move into the arena, it will be interesting to see GoPro’s reaction, and whether moving into China – a plan suggested by CEO Nick Woodman at CES 2015 – could help the company continue to triumph.
