Tariffs prompt GoPro to pull manufacturing from China
GoPro on Monday announced plans to pull production of US-bound cameras out of China to avoid tariffs that could push up its prices in a fiercely competitive market.
Manufacturing of GoPro cameras for countries other than the US will remain in China, according to the Silicon Valley-based electronics firm.
"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 GoPro chief financial officer Brian McGee.
"We believe this diversified approach to production can benefit our business regardless of tariff implications."
GoPro expected to make the move at relatively low cost since it owns production equipment it uses in China while a partner there provides facilities.
Production of US-bound GoPro cameras should be moved out of China by the middle of next year, according to McGee. The company offered no details on where it would relocate.
The camera and technology company early this year cut its workforce and shut down its Karma drone unit as it grapple with disappointing financial performance.
GoPro soared to popularity with cameras used for social media and extreme sports photography but has struggled in the face of low-cost competition.
© 2018 AFP