GoPro will continue to produce cameras bound for other locations in China. Several companies are looking at shifting production locations due to the ongoing trade tensions and tariffs but these firms are not coming back to the US. Instead they are opting for countries in Southeast Asia where there are no tariffs and the cost of labor is less.
The proposed round of tariffs on $200 billion of Chinese products, set to take effect from January 1, 2019, was postponed after the US and China called a trade truce earlier this month. GoPro has been dealing with rising competition and slowing demand for its products for some time but the company expects to generate profits in the fourth quarter.
Earlier this month, GoPro said it saw strong sell-through for all three of its HERO7 camera models during Black Friday and Cyber Monday, with the HERO7 Black being the top-seller. The company is optimistic on its HERO7 line as it heads into the December holiday season.
GoPro’s shares have fallen 35% so far this year and over the past one month, the stock has dropped 10%. The stock was up 0.20% in premarket trade on Tuesday.