It seems that the drone company Parrot may be in some troubled waters. The French company recently laid off over a hundred of its employees, in what seems like a domino effect of low profits.
One would ask, with drones being its most popular among the civilian population, why would Parrot be in danger? The answer can be summed up in three letters: DJI. With the rise of DJI both in popularity and sales, its competition are eating dust. Parrot received only a mere fraction of the profits DJI had over the past few years alone.
Parrot in Trouble
DJI, the Chinese-based drone manufacturing company currently controls 70% of the market. Every other company has to pick up the scraps left by DJI, and it is not enough. DJI offers both quality and affordability in their drones. Their top sellers, Phantom and Mavic have sold millions globally. For other companies to compete, they have to challenge both the volume and quality. That, it seems, may not be possible with the current market.
To set themselves apart from the competition, drone manufacturers often go by several fronts: camera quality, affordability, and user-friendly features. While a combination of these factors can come in handy, another thing that DJI has to offer is their brand. The brand DJI has created over the years nearly guarantees quality components. There has also been plans of insurance packages for newer drone purchases by DJI to come by 2020.
Sales is Everything
With sales being down and profits dwindling, Parrot had to make some adjustments. Will this be a sign of more lay-offs to come in the future? Or will we see the French company Parrot close their doors and shut off their manufacturing?
With DJI dominating the drone market on a global scale, it can be a difficult time for smaller companies, or even indie kickstarters to get some traction.