Leading portable camera maker, GoPro, Inc. (GPRO), recently announced a couple of strategic partnerships as part of its efforts to enhance its offerings and expand global footprint. The company’s GoPro HERO4 camera, which is its most advanced offering till date, features as a key factor in both alliances.
The company has partnered with the UK-based Vislink, a communication services provider, in order to avail certified live high definition (“HD”) wireless broadcast service for its GoPro HERO4 cameras. This apart, the company’s products has also been selected by Marriott Hotels, a flagship brand of Marriott International, Inc. (MAR), for enhancing the latter’s customer experience at its resorts and hotels in Caribbean region and Latin America.
Vislink and GoPro will come together to develop a minute transmitter that can be worn or mounted in distinctive areas for enabling a unique broadcast experience for viewers. This marks the company’s first initiative to provide its offerings in tune with the demand for live HD transmission of events.
Marriott Hotels will be offering their guests a whole new experience with GoPro HERO4 cameras at as many as 17 of their hotels and resorts. Under the new offer, people on vacation will be able to test drive a GoPro HERO4, in order to capture and share all their adventures and experiences during the Marriott stay.
Earlier this month, the company also launched its GoPro Channel app for LG Smart TVs in collaboration with LG Electronics USA, a unit of LG Display Co., Ltd. (LPL). Such strategic initiatives are expected to enhance the demand for GoPro’s HERO camera series, going forward. Notably, the company’s cameras can be attached to moving objects or even people, and are specially used by sportsmen or sky divers to capture intricate details of a sporting episode.
However, GoPro has been facing extreme price volatility, ever since its IPO launch in Jun 2014. While the company has a sound business model, its size, limited scope for differentiation and intensifying competition remain causes for concern. Of late, other key players in the technological sector have also been targeting GoPro’s market. The recent portable camera-related patent win by tech giant Apple Inc. (AAPL) led to a drop of over 12% in the company’s shares on Jan 13.
Despite all these, this Zacks Rank #2 (Buy) company’s products like GoPro HERO4 are likely to drive growth, going forward. Following the news of the aforementioned developments, the company’s shares rose nearly 5% in yesterday’s trading session reflecting positive investors’ sentiment.
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