GoPro Integrates App With Huawei's New Phone in China Push

  • Editing app will come preinstalled on Huawei’s P10 phones
  • GoPro aims to boost brand presence and sales in China

GoPro Integrates Editing App on Huawei's New Phone

GoPro Inc. is integrating its mobile editing app into Huawei Technologies Co.’s newest smartphones, in a marketing push to boost brand presence and sales in China amid sluggish demand in the U.S.

The app, called Quik, will come preinstalled on Huawei P10 smartphones as the main editing option for consumers, GoPro announced Sunday at the Mobile World Congress in Barcelona. GoPro’s goal is for the app to encourage Huawei users to buy one of the company’s cameras and capture videos that can be automatically edited on the app.

Sales have slowed for GoPro’s tiny, rugged action cameras in its largest markets. The company also recalled its Karma drone in November, less than two months after its debut because of battery problems. Earlier this month, GoPro forecast sales in the current quarter far below analysts’ estimates.

Working with Huawei points to one of GoPro’s bright spots: international growth. Though demand in the U.S. has declined, sales in Asia doubled in the fourth quarter from a year earlier. Revenue from Asia now makes up 18 percent of total sales, compared with 11 percent a year ago, according to data compiled by Bloomberg.

Huawei’s products and services are sold in more than 170 countries and its smartphones rank third in global mobile phone shipments, according to IDC data. The Shenzhen, China-based company began making carrier equipment and has branched out into businesses that produce devices ranging from smartphones to wearables.

Brad Erickson, analyst at Pacific Crest Securities LLC, said growth in China is unlikely to move the needle for GoPro, given stiff competition from low-cost manufacturers.

“I think the market for a $300 to $400 action camera outside the U.S., where the culture can bear that cost, is very low -- especially where you have cheaper cameras with the same video processors,” he said.

The Quik app was downloaded more than 12 million times in 2016, according to GoPro. Quik has more than 13 million monthly active users and more than 1 million daily active users across Android and Apple devices, according to data from Apptopia.

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