Recently, the American capital market two big stars of science and technology, intelligent hardware stocks GoPro (NASDAQ: GPRO) and Fitbit (NYSE: FIT), have stock record.
On January 18, U.S. stock market because of Martin Luther King day holiday, the eastern time on January 15, closing, GoPro and Fibit share price of $11.46 and $17.97 respectively, market value is $1.576 billion and $3.723 billion respectively.
Sounds "" house leaks, Fitbit due to inaccurate heart rate tracking results, by collective action; GoPro Mired in disguise business information, or face class-action lawsuits.
Both at the beginning of the listed companies have achieved a profit, the time of IPO is unlimited scenery, is also a large number of investors. But today, the two companies are in trouble. There is two reasons: one is many Internet giant has a strong to enter their market; Second, their business model is relatively single, although the two layout of new business, but revenues were yet to see significant results.
Nowadays, at home and abroad intelligent hardware is one of the most hot field of entrepreneurship. GoPro and Fitbit as early intelligent hardware industry leader, is now facing the problem also mapping the plight of the industry.
Scenery is no longer
GoPro first entered the market's goal is to provide extreme sports record tool for extreme sports people, with full hd, jitter and abundant fixed, carry accessories such as lead over competing products that solve the extreme sports enthusiasts at the heart of the pain points.
June 26, 2014, sports GoPro camera manufacturers (stock code GPRO) as listed in nasdaq. Opening on its share price closed at $31.34, a rise of 30.58% in the price, listed four days, GoPro's share price has doubled.
After a year on June 19, intelligent bracelet manufacturers Fitbit (NYSE: FIT) on the NYSE, first-day closed at $29.68, a rise of 48.40% in the price of $20.
But in the last half year, both companies were retired.
Recently, the movement of camera failed to reach the expected impact to the holiday shopping season sales, GoPro announced revenue will be lower than expected in the fourth quarter of 2015. In addition, the company will be layoffs, layoffs accounted for 7% of the total number of employees, involving about 105 employees. Not only that, in July of last year started selling Hero4 Session camera motion, five months later, the company has the sport camera price from $400 to $199.
And the latest action is Fitbit, CES in January 6, released the new product -- smart watches blazing away. But this product by critics as "no innovation on product design and function", so the shares plunged 18%, below the IPO price of $20 for the first time.
On the second day of the launch, that is, on January 7th, Fitbit suffered a class-action lawsuit. From the United States, California, Colorado, and Wisconsin's consumer alleged that the Fitbit introduced market last year, two models at HR and firm heart rate tracking results are inaccurate, and the error is very big.
Although according to the third party data, Fitbit still top of the charts wearable equipment industry, in 2015, the wearable devices shipped from 2.3 million to 4.7 million. But have to say, the market share is still apple took part. Look from the stock, at present the stock from its highest have gap by about 65.5%.
A declined to be named the domestic Internet giant intelligent hardware project director said, remove the federal reserve to raise interest rates and other macroeconomic factors, GoPro and Fitbit's share price soared mainly because this paragraph of time the market environment is good. Crucially, the intelligent hardware companies in the U.S. stock market, investors interested in the concept of heat, causing the market capitalisation of GoPro and Fitbit seriously overrated. "I think the current market valuation is a return to a relatively reasonable level." The head of the 21st century economic report.
The entrepreneur's destiny
From a business perspective, the original GoPro and Fitbit occupied most of the market, there were almost identical to competitors. Crucially, these competitors are giant.
Sports field camera, camera motion, except for millet production of small ants garmin and focus of outdoor sports equipment companies already have camera business companies such as SONY have launched similar products. GoPro, in other words, is not as listed before that kind of dominance. Intelligent hardware entrepreneurs, "kay step caring about" founder zhang Ming said the giant, once in the market, its brand, the control of the supply chain and the bargaining power, original small businesses will inevitably impact.
"Last year I bought a GoPro products at CES, launch new products this year, however, on the function, I don't see what's outstanding iteration." Zhang Ming told 21st century economic report. Plus the market itself has a certain degree of saturation, GoPro revenue nature has to meet the bottleneck.
GoPro, in fact, before the public, through expensive hardware sales can make a profit, for the time being, it most of the revenue from selling hardware. GoPro is not don't realize that simply selling hardware profit is difficult to have a future, because this model is to face the challenges of the giant, 2 it is can't form a favored by investors.
GoPro, therefore, in the listing it says, he has started the video content operations, to create a "media empire". That time, thought to GoPro likely will be the next to the entrance of the video.
In 2014, the GoPro hired former Skype chief executive Tony Bates (Tony Bates) competent GoPro new media group, after a series of actions. But in the results of the meeting in October last year, the company's CEO Nick Woodman (Nick Woodman) said GoPro to invest in the media business, but declined to say when its media business profitability.
There are entrepreneurs to 21st century business herald reporters that cuts into the content business, from the hardware span is larger, and the content business unless there is a constant innovation, to investors, GoPro perhaps should look for a new story.
Fitbit facing the giant spoiler is apple. Described above, apple took the Fitbit part of market share. If Apple in the first quarter of this year to Apple Watch iteration, Fitbit can carry up there will be a big problem. The intelligent hardware project director said, Fitbit specializing in fitness, but like most of the bracelet watches manufacturer, the product is still in a state of the icing on the cake, data and services did not form an effective circulation.
"Erosion by giant and limited business model, it is domestic intelligence hardware entrepreneurs will face problems. The domestic market competition is intense, money by selling hardware, like GoPro and Fitbit is harder." The intelligent hardware project director said, intelligent hardware entrepreneurs need to build their own ecosystem, looks unlikely, suggest the ecological support for giant, or in the field of a truly intensive cultivation and innovation. At present, for example, a drone vendors to enter sells the field of agriculture, this might be a beneficial attempt.
