Apple Inc. (NASDAQ:AAPL)’s new patent for a waterproof, remote-controlled sports camera sent shivers to GoPro Inc (NASDAQ:GPRO) stocks, which fell as much as 12 percent, down $6.91 to $49.87 per share on Tuesday as news of the new Apple patent circulated in blogs and news sites. Patently Apple reported the news first, describing the new device from Apple as a “superior GoPro like camera system.”
Apple Inc. (NASDAQ:AAPL) has filed for the patent back in 2012 with the USPTO (United States Patent and Trademark Office), and the agency has approved the application on Tuesday. Technology analyst Jack Dawson of Jackdaw Research, cited by abc NEWS, cautions against speculating too much about the company’s patent filing, noting that the Cupertino, California based tech giant has filed for several patents in the past for products that has not come out in the market. Dawson argues that Apple has already developed sophisticated camera systems for its iPhones and iPads, and according to him, it is doubtful for the company to release a standalone camera system unless it is synced with any other Apple product. Regarding the effect that news of the patent had on GoPro shares, Dawson noted that “anytime Apple enters a market, it can be bad news for existing players.”
GoPro, considered as the leading manufacturer of sports cameras, is mentioned in the Apple Inc. (NASDAQ:AAPL) patent filing in a critical light. The patent filing document notes that GoPro’s HD Hero2 “includes only a single image capture system”, which, according to Apple, is liable for “excessive wind resistance” and “damage”. Apple continues that the camera system under its patent overcomes such shortcomings, most notably that of susceptibility to vibrations. However, analyst Alex Gauna of JMP Securities LLC, says that while the success of GoPro’s sports cameras has catalyzed imitations, GoPro should not be taken as threatened at all. “It still looks like their market to dominate” Gauna says, as quoted by Bloomberg.
Apple Inc. (NASDAQ:AAPL)’s new sports camera patent is just one among the 34 new patents granted by the USPTO to the tech giant. The patent application for the digital camera states that the device will record audio and video, and will be able to do so in underwater environments.
This article has been written by Nonito Guntan.