Chinese sports camera maker Insta360 says price war with DJI is expanding the market

Insta360, the Chinese rival of GoPro, said competition triggered by price cuts to its full-degree action cameras was attracting more customers, as it pushes further into the turf of drone giant DJI.\nThe price war with DJI, which moved into the 360-degree action camera field earlier this year, had “expanded the overall market”, and an increasing number of consumers were choosing Insta360 for its “unique strengths”, said Liang Jingkang, founder and chairman of Insta360.\n“Despite the fierce price competition, the company still achieved over 90 per cent revenue growth in the third quarter,” Liang said in an online Q&A with investors on Monday.\nShenzhen-based Insta360, which led the global 360-degree camera market with a 67 per cent share in 2023, slashed prices for its flagship X5 camera after its crosstown rival DJI launched an 8K panoramic video camera, the Osmo 360, in July.\nIn October, DJI offered price cuts on a range of its products including action cameras and drones. Insta360 responded with cash coupons to attract DJI consumers while offering discounts on a wider range of gadgets.\n\nInsta360 is also making an aggressive move into the drone market, where DJI is estimated to hold a 70 per cent share globally. Insta360’s drone brand Antigravity, which was incubated by the company in collaboration with third parties, was expected to start initial sales in selected regional markets in the fourth quarter, according to Liang.\nInsta360 decided to enter the drone market five years ago as it saw unfulfilled demand and growth potential, Liang said.\n“The drone market has a higher growth ceiling,” he said. “And 360-degree drones are an entirely new category that can go beyond what traditional cameras and drones are capable of.”\nLast week, Insta360 reported 2.94 billion yuan (US$413 million) revenue for the third quarter, up 93 per cent year on year. However, net income for the period shrank 16 per cent to 271.9 million yuan, which the company attributed to “substantial investments in chip customisation and other strategic projects”.\nLiang said the investments were necessary for “building future competitiveness”, and the company would cut costs to achieve more stable margins.\nFounded in 2015, Insta360 made its trading debut on Shanghai’s Nasdaq-style Star Market in June this year, when its stock surged 285 per cent after raising 1.9 billion yuan in the city’s largest initial public offering in 17 months.\n