Categories Markets, Retail

GoPro to move camera production out of China due to tariffs

GoPro Inc. (GPRO) is planning to move some of its camera production out of China to avoid new tariffs. Although the company did not specify a location, it is looking to shift most of the production of its US-bound cameras from China to another country by the summer of 2019.

The company views this as a proactive move to help spread out its manufacturing activities in order to ease pressures from the trade war and potential tariffs. GoPro does not expect the shift to cost much as the company has its own production equipment and the facilities will be provided by its manufacturing partners.

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.

GoPro’s stock sinks 7% despite Q3 results beat

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.

Also Read:  Lululemon Athletica (LULU): Increased move to active lifestyle sets up opportunity for growth and expansion

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.


We’re on Flipboard! Follow us to receive the latest stock market, earnings and financial news at your fingertips.

Most Popular

Highlights of Aurora Cannabis (ACB) Q4 2020 earnings report

Aurora Cannabis, Inc. (NYSE: ACB) reported a wider loss for the fourth quarter of 2020, hurt by a 5% decrease in revenues. The company’s stock fell sharply during Tuesday’s after-hours

Infographic: Stitch Fix Q4 2020 earnings

Stitch Fix (NASDAQ: SFIX) reported fourth-quarter 2020 financial results after the closing bell on Tuesday. The company reported an 11% increase in Q4 revenues to $443.4 million, beating Wall Street

Nike Inc. (NKE) stock spikes after beating Q1 2021 estimates

Nike Inc.'s (NYSE: NKE) profit and revenue in the first quarter of fiscal 2021 surpassed the market's estimates and sent the NKE stock up by about 7% in the extended