Part of the not-so-good decision was the pricing of the Hero 4 Session at $399.99 during its launch that made it quite prohibitive and resulted in poor sales of the device. That left GoPro with no choice but to slash the price of the device and is now down to $199.99.
As a result of poor sales, the company announced on January 15 that it would be making job cuts brought about by less-than-expected fourth quarter 2015 revenues, admitting that the pricing decision did hurt the company.
It was also confounded by a flurry of class-action lawsuits lodged against the company by several securities-litigation firms alleging that GoPro provided false and misleading financial statements to its investors.
It is expected that the Hero 5 would help turn things around for GoPro but then they need to wait for a good eight months more to see if they could win back investor confidence and put the American camcorder company out of the red and making money again.
Contrary to speculations that it is not doing well financially, GoPro said that the company’s earnings are doing fine and that they just needed to streamline the business in order to make it more palatable to investors.
Despite poor sales last year GoPro claims that it has, at least, $500 million in cash and it has no payables, which means that its financial situation is not as bad as others may think.