GoPro might switch to Qualcomm chips from Ambarella

The leading action camera maker GoPro may switch its chipset supplier from Ambarella to Qualcomm. The two companies are said to be in talks and Qualcomm is trying its best to get the contract. The discussion at the moment is said to be over the selection of chipset for upcoming GoPro HERO5 action camera.


Ambarella has been the chipset supplier for GoPro action cameras for quite long time and it is also the reason behind the high-quality videos and photos that GoPro cams are capable of recording. But it is the higher cost of Ambarella chipset that causes those cameras to cost too expensive for a casual user and thus in turn hurting GoPro's position in the market. If you compare GoPro cameras with its competitors, there is a significant price difference between the products. For example, the recently launched Xiaomi's Yi Action Camera 2 costs almost half of the GoPro HERO4 with an almost same set of specifications on paper.


Even though Qualcomm's chipset offering will cost cheaper to GoPro and might help it in bringing the cost down, it will not be an easy decision to make. GoPro will also have to keep in mind that the output quality remains unaffected which is the USP of its devices. As for Ambarella, GoPro accounts for about 30% of its overall revenue which means it can't afford to lose the contract.


With GoPro currently in a conundrum and Ambarella and Qualcomm fighting for having the contract, we can expect to see a pricing war between the two chip makers which could turn out to be a good thing for GoPro.