GoPro Hero 3+ is one of the best selling action cameras on the market. (Photo : Reuters)
Just hours after the approval of Apple's new patent for a video camera, GoPro's stocks went on a nosedive and dropped by as much as 12 percent. According to reports, GoPro investors started to pull out their shares after news of a new Apple camera patent that could rival that of GoPro began circulating the internet.
GoPro's stock prices plummeted after Apple was received 34 new patents including one that closely resembles a GoPro wearable camera. According to patent documents, the design of the new camera shows that it can be installed in various sports gear like helmets, masks and even bike handles. This creates a big threat for GoPro's products that targets sport enthusiasts who wants to record their experiences while enjoying their hobby at the same time.
Right now GoPro holds the biggest market share in terms of unit sales for rugged high-definition cameras that can be both wearable and can be mounted on other sports equipment's. Recent statistics shows that GoPro has achieved the $1 billion mark in terms of revenue last 2014.
However, for some business analysts, despite Apple's accrual of the video camera patent it is still a far-fetched notion that the company is willing to develop one and produce it on a marketable scale. Instead, Apple might have other plans for the patent like integrating it to some of its product. Also, it is no longer a secret that sometimes, Apple patents some creative designs and ideas without pursuing it commercially.
Whether Apple has plans develop a product that could rival that of GoPro is certainly a thing of the future. However, right now it is clear that Apple poses a big threat for GoPro's dominance of the market.
