GoPro issues recall to all Karma Drones
GoPro Inc.'s first everquadcopter drone is off to a bad start.
Last Tuesday, GoPro said that it is recalling its new Karma drone. "In a very small number of cases, Karma drone units lost power during operation," says GoPro. "There have been no injuries or property damage that have been reported due to the defect," added GoPro in a statement.
During last week's earnings call, GoPro executives have spoken production concerns about the Karma but didn't indicate any plans for a recall or the power matter at the time.
GoPro will issue refunds for all the 2,500 drones it has sold since October 23. They will not offer replacements for a fixed model but will issue a full refund for the device. The company issued no comments about what triggered the power defect. Recalled Karma drones can be given back to GoPro directly or anywhere they were acquired initially.
"We are working in close coordination with both the US Consumer Product Safety Commission and Federal Aviation Administration," says CEO Nicholas Woodman. "We are very sorry to have inconvenienced our customers and we are taking every step to make the return and refund process as easy as possible."
After GoPro announced the recall, its stock went down for more than 9%.
GoPro's Karma drone, which is retailed for $799, signified GoPro's first major effort to challenge the leader DJI in the drone business. It is also their first attempt to expand its products further than its main action camera streak.
Companies are mandated by law to declare recalls in cooperation with the CPSC.
Samsung Electronics Co. who came under the same situation in September for announcing buyers to return their combustible Galaxy Note 7 smartphones before allowing the CPSC to inspect and create the announcement. The Note 7 suffered difficulties with its lithium-ion batteries.
"Safety is our top priority," said Woodman in the released statement.