GoPro shares dropped 12 percent on Wednesday after Apple for a mountable camera designed for outdoor sporting equipment.
In its patent filing, Apple cited weaknesses in GoPro鈥檚 camera design, such as 鈥渆xcessive wind resistance鈥 and being 鈥渟usceptible to damage from vibrations.鈥 Similar to GoPro鈥檚 cams, Apple鈥檚 version will be capable of recording sounds and taking underwater pictures. But it can be controlled via smartwatch.
GoPro has dominated the wearable camera market since its inception in 2002, fending off competition from companies like Sony. However, it鈥檚 unclear whether GoPro can become a full-fledged media business. GoPro stock closed at $49.87 after Apple鈥檚 announcement, up 73 percent since the company鈥檚 June 2014 IPO but down nearly 50 percent from its high of $98.47, .
A handful of competitors, including Sony and Polaroid, released high-res wearable cameras at this month鈥檚 Consumer Electronics Show. But GoPro should manage to retain its market share, JMP Securities analyst Alex Gauna . 鈥淭he success of GoPro has inspired quite a bit of imitation, but none of it is overly threatening.鈥
It鈥檚 unclear whether Apple is committed to competing directly with GoPros camera products. It is possible that the patent will be used to develop cameras on preexisting Apple devices.