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GoPro says the chip shortage won’t affect holiday sales

GoPro says the world chip and different provide chain shortages won’t affect its holiday sales this 12 months, which means the motion digicam firm is poised to complete one in every of its finest years in latest reminiscence in sturdy trend.

“Regardless of provide chain constraints which can be affecting many industries, we have now efficiently partnered with our suppliers to provide stock to assist our fourth-quarter income expectations,” CEO Nick Woodman mentioned whereas discussing the company’s third-quarter financial results on Thursday. “ and our retail companions can be stocked and prepared for customers this holiday season.”

That’s particularly excellent news for GoPro’s backside line as a result of the new Hero10 Black is promoting extremely effectively regardless of the increased $499 price ticket. GoPro mentioned Thursday that 98 % of the roughly 800,000 cameras it bought in the third quarter had been at or above the $300 price ticket — up from 83 % in the third quarter of 2020. The common sale value for cameras in the quarter was $381, up 25 % 12 months over 12 months.

GoPro has additionally been more and more shifting to a direct-sales mannequin over the previous couple of years — almost a 3rd of its income this previous quarter got here from sales on — which suggests it’s making extra on each digicam bought. The corporate mentioned Thursday that it booked $14 million in income this previous quarter for its subscription service, too, which now has over 1.34 million prospects.

All that provides as much as the firm’s finest third quarter since 2017. GoPro booked $317 million in income and about $49 million in revenue. (The corporate reported a quarterly revenue of $312 million, although $263 million of that was attributed to a wonky deferred tax scenario.)

GoPro’s finest quarter yearly, although, is the last one. The holiday season has all the time been variety to the digicam firm, even in its darkest years. With the Hero 10 Black already doing effectively and the memories of layoffs and failed products getting fuzzier, it might become one in every of the firm’s greatest quarters since its blockbuster holiday season in 2014 — which was when it broke into the mainstream with the Hero4 cameras.
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