The shares of action camera maker, GoPro Inc (NASDAQ:GPRO), fell in excess of 20 percent last week after Apple Inc. (NASDAQ:AAPL) patented an improved mountable sports camera design. The design from iPhone maker has mounting ability over bicycles and even scuba helmets.
GoPro gained popularity with its action sports camera series ‘HERO’ and the company performed equivalently at the stock market. However, the announcement from Apple Inc. (NASDAQ:AAPL) about its latest patent for a mountable camera device triggered massive selling of GoPro Inc (NASDAQ:GPRO)’s shares with more than 20 percent decline in share prices last week.
Roger Kay, Endpoint Technologies, which focuses on tech intelligence, founder, said,
“GoPro has had a great growth curve up through now, but you can easily see that growth being truncated dramatically with the arrival of Apple in this market.”
At the same time, some experts are speculating that the rumors of Apple Inc. (NASDAQ:AAPL) retorting towards the camera industry might come true in the upcoming years, especially after considering the iPhone maker’s push towards hardware category. Apple enjoys an inevitable benefit over other tech companies with its ecosystem and a camera that works seamlessly within its ecosystem might gain quick momentum.
On the contrary, some market experts are opined that Apple has a habit of registering several patents without even using them and this might just be another one in the series. Further, GoPro Inc (NASDAQ:GPRO) has built a strong name for itself in the action-camera industry and it has a 40 percent market share in the industry. According to some experts, this falling spree might just help new investors to secure positions in the company for long-term growth.
GoPro Inc (NASDAQ:GPRO) has carved out a niche for itself and it has over 2.6 million subscribers on YouTube and 4 million Instagram followers. The shares of GoPro are trading at $47.34 with current P/E ratio of 175.55.
This article has been written by Prakash Pandey.