‘Mythbuster’: $200 million in = $2.25 billion out? Fact. Not fiction.
If you’re interested in any kind of extreme sports* or adventure photography, you might have had a GoPro on your holiday gift list this year. Or your head. These versatile and rugged wearable cameras allow you to memorialize your sky dives, underwater descents, fakie snow board maneuver and everything in between. Like many innovative startup consumer electronics companies, GoPro uses BOMControl from Arena to streamline communication with global contract manufacturers and bring their innovative and highly-coveted new products to market.
Recent estimates size the global contract manufacturing market at $671.7 billion by 2018, with the most significant market segment in consumer electronics. GoPro works with the world’s largest contract manufacturer, Hon Hai Precision Industry Co., Ltd, also known as Foxconn, which also manufactures other leading consumer electronics, from the iPhone and iPad to the Xbox and Playstation.
Foxconn and GoPro recently announced an exciting new partnership. For an investment of $200 million, Foxconn now owns 9% of GoPro, which translates to a $2.25 billion valuation for the San Mateo-based camera company. This is a strategic play for Foxconn—a recent profile in the Economist observes that the next steps in Foxconn’s growth will entail moving from the middle of the supply chain towards both ends, with ownership stakes in both retail and product development.
While Arena has a rich history of their affordable BOMControl solution helping firms like GoPro better control their manufacturing, collapse cost and shrink time to market, it’s always good to hear some see real life stories quantified in such a breathtaking manner. What a remarkable leap forward for GoPro founder Nicholas Woodman and his team. Congratulations. From A to X games. Fast.
*You can define your own cutting edge adventure sport, of course. For New York Philharmonic performer David Finlayson, the GoPro is just a new way to jam. Caution; the following images contain heads flying back and forth at the viewer and may be too intense for those under sixteen years of age.