Arthur J. Villasanta – Fourth Estate Contributor
San Mateo, CA, United States (4E) – Action camera maker GoPro, Inc has started the process of most of its camera production destined for the U.S. out of China to deal with the sales-killing impact from any new U.S. tariffs.
GoPro expects to begin this relocation by the first-half of 2019. It clarified that production for markets outside the U.S. will continue to be made in China.
GoPro, however, hinted its decision to move U.S.-bound production out of China might not be final It described its decision tot leave China as “very proactive” in light of Trump’s trade war that shows no signs of ending despite a glimmer of hope offered by a truce in any new tariffs until March 1, 2019.
“It’s important to note that we own our own production equipment while our manufacturing partner provides the facilities, so we expect to make this move at a relatively low cost,” said Chief Financial Officer Brian McGee.
GoPro is fighting against waning demand for its erstwhile must-have miniscule action cameras. In November, the company forecast fourth-quarter revenue below analysts’ estimates. This disappointment came despite the company launching new low-price models of its flagship Hero camera for the Christmas season.
GoPro insists it will become profitable in the fourth quarter. It expects “low channel inventory” to be well-positioned for the first quarter of 2019.
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