GoPro launched more new products over the last 18 months than ever before, and the result has been falling profits for the action camera makers.
The company announced in late 2015 that there would be a round of job cuts totalling around 7 percent of the 1500 staff globally. And now they're cutting even more with several products set to cease production. GoPro CEO Nicholas Woodman announced the news during a quarterly earnings call which detailed tumbling profits were down as much as 70 percent on the same period a year before.
In light of this, the company will no longer manufacture their cheaper lines - the Hero, Hero+ and Hero+ LCD. They're the really affordable models, ones which were designed to bring new users into the GoPro fold. But that doesn't seem to be working and the profit margins are likely to be much lower, so they'll focus on the premium cameras in the future, including the Hero 4 Black, Silver and Session.
While the company might have liked to expand their business model this information seems to indicate that the premium user is still their best targer - people who are willing to pay more for top tier specs. They may sell less units but at a higher price point. Also, GoPro will release a Hero 5 model some time in 2016, and they've got a major drone project called Karma in the works. Let's hope they can get to the top of the action camera market again soon.