Insta360 Reports Market Expansion Amid Price Competition
- tech360.tv
- 3 minutes ago
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Chinese sports camera maker Insta360 reported significant revenue growth, stating a price war with rival DJI is expanding the overall market. Insta360 led the global 360-degree camera market with a 67% share in 2023.
Insta360, a rival to GoPro, said competition from price cuts to its full-degree action cameras was attracting more customers. This push further into the drone giant DJI’s territory follows DJI’s entry into the 360-degree action camera field.
Liang Jingkang, founder and chairman of Insta360, stated the price war with DJI had “expanded the overall market.” An increasing number of consumers were choosing Insta360 for its “unique strengths,” according to Liang.
“Despite the fierce price competition, the company still achieved over 90% revenue growth in the third quarter,” Liang said in an online Q&A with investors. Shenzhen-based Insta360 slashed prices for its X5 camera.
This move followed crosstown rival DJI launching an 8K panoramic video camera, the Osmo 360, after which DJI also offered price cuts on a range of products. Insta360 responded with cash coupons to attract DJI consumers and offered discounts on a wider range of gadgets.
Insta360 is also making an aggressive move into the drone market, where DJI is estimated to hold a 70% global share. Its drone brand, Antigravity, incubated in collaboration with third parties, was expected to start initial sales in selected regional markets in the fourth quarter, Liang said.
Insta360 decided to enter the drone market five years ago due to unfulfilled demand and growth potential. “The drone market has a higher growth ceiling,” Liang said. “And 360-degree drones are an entirely new category that can go beyond what traditional cameras and drones are capable of.”
The company reported USD 413 million (2.94 billion yuan) revenue for the third quarter, a 93% year-on-year increase. However, net income for the period shrank 16% to 271.9 million yuan.
Insta360 attributed the net income decrease to “substantial investments in chip customisation and other strategic projects.” Liang noted these investments were necessary for “building future competitiveness.” The company would cut costs to achieve more stable margins, Liang added.
Founded in 2015, Insta360 made its trading debut on Shanghai’s Nasdaq-style Star Market in June. Its stock surged 285% after raising 1.9 billion yuan in the city’s largest initial public offering in 17 months.
Insta360 reported over 90% revenue growth in the third quarter, stating a price war with DJI is expanding the market.
Insta360 held a 67% share of the global 360-degree camera market in 2023.
The company is moving aggressively into the drone market with its Antigravity brand, challenging DJI’s estimated 70% global share.
Source: SCMP