New Apple patent takes a bite out of GoPro's stock
Apple has gotten a patent that has already put its main competitor, GoPro, on its heels.
Apple has gotten a patent that has already put its main competitor, GoPro, on its heels.
Apple聽Inc has been granted a patent for a wearable camera that could possibly challenge action cameras made by聽GoPro聽Inc.
The patent, which cites specific weaknesses in聽GoPro's cameras, includes details about a camera system that can be mounted on bike helmets or scuba masks,聽Apple聽said in an application filed with the U.S. Patents and Trademark Office.
Shares of聽GoPro, whose cameras can be mounted on helmets, surf boards, bikes and dog harnesses, fell as much as 15 percent.
Apple's newly patented camera system can also be used under water to take pictures and record sounds, according to the application.
A potential entry by the聽iPhone聽maker into the action camera market could also put pressure on privately held Polaroid Corp, which makes the small and colorful Cube cameras.
JMP Securities analyst聽Alex Gauna, however, said it was premature to assume that聽Apple聽would soon launch a wearable camera.
"It does not seem to me that launching an action camera accessory is the most logical product extension for聽Appleto pursue right now," Gauna said.
Apple聽declined to comment, while聽GoPro聽was not immediately available for comment.
"I think that it will have about the same impact on聽GoPro聽as the聽iPhone聽has had on camera makers and that impact is that there are fewer cameras sold but the number isn't zero," Wedbush Securities analyst聽Michael Pachter聽said.
Videos shot with聽GoPro's cameras have created a buzz on the Internet, attracting millions of views on YouTube.
Olympic gold medal winning snow boarder聽Shaun White聽and 11-time world champion surfer聽Kelly Slater聽are among well-known athletes who have endorsed the cameras.
Intellectual property blog Patently聽Apple聽reported earlier in the day that聽Apple's patent, which was filed by the company in 2012, incorporates some intellectual property from Eastman Kodak Co that the company acquired in November 2013.
With Tuesday's decline,聽GoPro聽shares are now down 51 percent since their high of $98.47 last October. Still, the stock is up 73 percent since its IPO last June.
"We look at it as a buying opportunity at JMP, because what we saw out of the Consumer Electronics Show at聽Las Vegas聽last week is that聽GoPro聽remains the undisputed leader in the action capture device category," Gauna said.
GoPro聽shares were down 11.8 percent at $50.10, while聽Apple聽was up 1.37 percent at $110.76 in late-afternoon trading on the Nasdaq on Tuesday.
(Additional reporting by Anya George Tharakan and Subrat Patnaik in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila)