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Business December 11, 2018 2 mins read

GoPro to Move Production Out of China

Business ı By Sherri Riggs

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GoPro Moves Production From China

GoPro is ending the year with strong numbers. The Nations most popular adventure camera had strong Black Friday and Cyber Monday sales, and is going into the new year with confidence, the founder said in a press release.

"GoPro had a very good Black Friday and Cyber Monday, which drove global double-digit year-over-year unit sell-through growth," said Nick Woodman, founder and CEO of GoPro. "We are very happy with the sell-through of the entire HERO7 line as we head into the important December holiday season."

And on the heels of the great post Thanksgiving sales,  GoPro has announced some more news. They are moving their US-bound gear production out of China. GoPro says they are moving some of production out of China because of potential tariffs that could kill their US business.

"Today's geopolitical business environment requires agility, and we're proactively addressing tariff concerns by moving most of our US-bound camera production out of China," said Brian McGee, Executive Vice President and CFO of GoPro. "We believe this diversified approach to production can benefit our business regardless of tariff implications."

Moving such large amounts of production to a new facility would normally cost a business quite a bit of cash. But McGee says GoPro is pretty confident that they won’t lose money in the transition, “It's important to note that we own our own production equipment while our manufacturing partner provides the facilities, so we expect to make this move at a relatively low cost."

The press release doesn’t say where they are moving production too, but with tariffs coming to multiple countries including Mexico, Canada and China, chances are GoPro will move US-bound gear production to the United States.

Many companies avoid producing their products in the States because of the price tag that comes with it. But, it seems with the threat of tariffs, many companies will follow GoPro’s lead and move production to the States, or risk higher costs and losing consumers.

 

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