In a press release on Tuesday night, GoPro said that approximately 2,500 drones have been sold since the Karma’s launch on October 23. Karma was meant to be a step forward for GoPro. The company is known for its robust action cameras which are frequently paired with drones and used for aerial photography. GoPro intended to offer its own first-party device built specifically for its cameras.
GoPro said it plans to resume shipments of the drones as soon as the power loss issues are resolved. It acknowledged that “in a very small number of cases” Karma drones have experienced unexpected power cuts during flight. While there have been no reported injuries or cases of property damage, the company said it puts the safety of its customers first.
“Safety is our top priority,” said GoPro Founder and CEO Nicholas Woodman. “A very small number of Karma owners have reported incidents of power failure during operation. We have moved quickly to recall all units of Karma and provide a full refund while we investigate the issue.”
The recall follows a series of other problems encountered during Karma’s development. GoPro has missed deadlines, hit production delays and reduced its sale expectations in the months preceding the launch. A GoPro spokesperson told the Wall Street Journal it remains optimistic for the future, aiming for a “good year with strong demand” in 2017.
GoPro has been running into market issues that have left it struggling to launch new ideas. The company’s share price is currently 88 percent lower than its high two years ago. Last week, investors were left disheartened as the company reported a 40 percent fall in quarterly revenue. It has also delayed the launch of its upcoming flagship camera model, potentially leading to reduced sales at the start of the holiday season.
The Karma drone was intended to be part of GoPro’s revival effort in the wake of a series of lackluster announcements. In 2015, it launched a budget camera designed to appeal to consumer audiences. The product was mispriced though and failed to be noticed by customers. Since then, the company has invested heavily in research and development, tripling its expenditure to 14 percent of its sales. Without any significant new devices to make up the cost, GoPro has been left struggling for cash. It now expects to record a loss next year.
GoPro has set up a dedicated website for Karma owners that assists with the recall procedure. The company will be giving every buyer a full refund. No replacement drones are currently available and GoPro hasn’t stated when it expects Karma to go back on sale. It is currently working with the relevant authorities to conduct an investigation into the power loss incidents.
“We are working in close coordination with both the U.S. Consumer Product Safety Commission and Federal Aviation Administration,” said Woodman. “We are very sorry to have inconvenienced our customers and we are taking every step to make the return and refund process as easy as possible.”
