Company management GoPro as the main reason for this development, he cites a drastic jump in the price of memory chips. In addition, a deeper analysis shows that the accumulated problems are much more complex, he explains Digitec.
The American manufacturer of action cameras is on the verge of bankruptcy. In its latest financial report, the company openly presented to investors that “has serious doubts about its continued survival“. According to US law, companies have a legal obligation to issue such a notification if they cannot guarantee with 100% certainty that they will remain liquid in the next 12 months. As a direct consequence of this announcement, the value of the company’s shares on the stock exchange recorded a sharp drop of as much as 14%.
In the official press release, GoPro emphasizes that it is currently intensively examining options for additional financing, new credit agreements or other strategic alternatives to avoid the worst-case scenario. According to data from documents submitted to the US Securities and Exchange Commission (SEC), the company’s cash reserves and cash equivalents have dwindled to only about $50 million. Annual turnover has already dropped to just over $651 million in 2025, ultimately resulting in a net loss of over $80 million.
The spike in memory prices as a trigger for the crisis
The acute crisis in which the company found itself was triggered by a drastic increase in the price of memory chips on the global market. The world’s leading manufacturers, Samsung and Micron, have shifted their primary production capacity to the high-bandwidth memory (HBM) that is necessary for AI data centers.
Because of this, the standard DRAM chip, which GoPro also uses, has become much rarer and more expensive. According to the company’s internal information, memory prices have in some cases more than doubled. For a product category whose selling price ranges between 300 and 500 euros, it is impossible to transfer such a high jump in production costs to the burden of the end customers, while the product remains competitive.
Strong competition pressure from China
Along with the jump in costs, GoPro’s core business has been steadily weakening. The demand for classic action cameras is growing much slower than a few years ago. This is mostly because casual users today prefer to rely on advanced camera systems on their smartphones. In addition, the cycle of replacing old devices with new models among existing customers has become noticeably longer.
GoProOn top of all that, we have to add the enormous pressure coming from Chinese competitors. Brands DJI i insta360 they have overtaken GoPro in several key world markets. Retail sales data from Japan show a dramatic trend. GoPro slipped from the position of absolutely dominant leader to only 19 percent of the market share within just a few years. Meanwhile, Chinese manufacturers continue to aggressively launch new models at short intervals, offering attractive features and significantly lower prices. The company’s market share has changed drastically over the years.
Radical cost cutting and uncertain GoPro fate
GoPro has responded to these challenges for now by launching a rigorous savings program. The company is rapidly selling off assets, and since April of this year, almost 25% of the total workforce has been laid off. In addition, the option of merging with another company or completely selling the company is being seriously considered.
However, the ultimate fate of the legendary brand does not depend solely on the management’s moves, but primarily on whether GoPro will succeed in attracting and animating a wider audience with its products. The manufacturer made the last breakthrough attempt in April, when it was launched Mission 1 tried to position himself in the professional segment.