When a scuba diver in Taiwan went shopping for an underwater camera, the answer wasn’t GoPro. It was DJI or Insta360—two Chinese brands that now control more than 80% of the action-camera market. The choice reflects a broader transformation in consumer technology, where long-standing Western leaders are being overtaken by agile competitors from China. The shift is not merely about price or features but about entire business models that prioritize rapid iteration, vertical integration, and deep supply chain control. For years, GoPro set the standard for rugged, portable cameras, but its dominance was built on a foundation that proved fragile when faced with disruption from companies that could manufacture, innovate, and distribute at unprecedented speeds.
GoPro once dominated the category it invented. In 2002, the company transformed the way people captured action by introducing a compact, durable camera that could withstand extreme conditions. By 2022, the California company still held about 75% of global sales, a figure that suggested enduring brand loyalty and market leadership. Today, that share has collapsed to 18%. The decline was not gradual but precipitous, accelerated by a combination of internal missteps and external pressures. A June regulatory filing disclosed “substantial doubt” about its ability to keep operating, a stark admission that showed the severity of its financial struggles. The filing cited rising costs, particularly from the global memory chip shortage, but omitted the years of declining revenue that had already weakened the company’s position.
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The shift didn’t happen overnight. After peaking in 2015, GoPro stumbled through failed product launches and competition from smartphones, which had begun to incorporate high-quality cameras capable of capturing action footage. Nearly every diver, travel creator, and outdoor enthusiast now recommends one of the two Chinese brands. Together, DJI and Insta360 account for over 80% of the market. Their rise reflects a broader trend in consumer tech, where Chinese brands are proving increasingly difficult to compete against. The global memory chip shortage only added pressure, though GoPro’s filings didn’t mention the years of shrinking sales that left it vulnerable to such disruptions. By the time the shortage hit, GoPro was already operating with thin margins, making it difficult to absorb additional costs without passing them on to consumers—a risky move in a market where price sensitivity had become a defining factor.
Robot vacuums follow the same script
GoPro isn’t alone. iRobot, the company behind the Roomba, invented the home robot vacuum in 2002, the same year GoPro launched its first camera. For nearly two decades, iRobot dominated the category, becoming synonymous with autonomous cleaning. Last December, it filed for bankruptcy. Its buyer? Picea Robotics, a Chinese manufacturer that had been producing Roomba models under contract. The acquisition marked the end of an era for American innovation in consumer robotics, mirroring the trajectory of GoPro in the action-camera space. The parallels between the two companies are striking: both were pioneers in their fields, both struggled to maintain their lead against Chinese competitors, and both ultimately succumbed to financial pressures that forced them into distressed sales.
Chinese brands like Dreame and Roborock now lead the robot vacuum market. Their rise mirrors the action-camera industry’s trajectory—faster innovation, lower prices, and features that Western rivals struggle to match. Dreame, a subsidiary of Xiaomi, and Roborock have distinguished themselves by integrating advanced navigation systems, longer battery life, and more sophisticated obstacle avoidance. These improvements are not merely incremental but represent a fundamental shift in how robot vacuums are designed and used. For example, Roborock’s latest models can map multiple floors of a home, recognize different room types, and even empty their own dustbins, features that were either absent or poorly executed in earlier iRobot products. The Chinese brands have also been quicker to adopt enhancements, such as voice control and integration with smart home ecosystems, which have become increasingly important to consumers.
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But dominance comes with scrutiny. Robot vacuums rely on cameras, sensors, and microphones to map homes, creating detailed digital floor plans that are often stored in the cloud. That’s raised data-security concerns, echoing debates over other Chinese-made tech like drones and electric vehicles. In 2023, the U.S. Department of Defense banned the use of Chinese-made robot vacuums in military facilities, citing risks that sensitive floor plans could be accessed by foreign entities. Similar restrictions have been imposed by other government agencies, reflecting broader anxieties about the collection and potential misuse of personal data. The concerns are not limited to the U.S.; European regulators have also begun examining the data practices of Chinese tech companies, particularly those that handle large volumes of user-generated information. These debates highlight a growing tension between the affordability and innovation offered by Chinese brands and the security implications of their widespread adoption.
The pattern is clear: Chinese brands are outpacing Western incumbents in consumer tech. The question isn’t whether it’s happening, but how far it will go as AI becomes standard in everyday hardware. The integration of artificial intelligence into consumer devices is accelerating this shift, as Chinese companies have invested heavily in research and development. Unlike Western firms, which often treat AI as a supplementary feature, Chinese manufacturers are designing products with AI at their core. This approach allows them to offer functionalities that are not just novel but genuinely useful. The speed at which these features are developed and deployed is a direct result of China’s robust tech ecosystem, which includes government support, a large talent pool, and a culture of rapid prototyping. For Western companies, keeping pace has proven difficult, particularly when their business models are built around slower innovation cycles and higher profit margins.
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GoPro’s last bet: security over savings
GoPro isn’t giving up. It’s pivoting to defense and aerospace markets, where security concerns might give it an edge over Chinese competitors. The strategy is a recognition that its traditional consumer base has largely migrated to cheaper, more feature-rich alternatives. By targeting industries where data security and supply chain reliability are vital, GoPro hopes to carve out a niche where its American origins are an advantage rather than a liability. The company has already begun supplying cameras to the U.S. military and has partnered with aerospace firms to develop ruggedized imaging systems for drones and satellites. It’s a gamble—one that assumes governments will pay a premium for American-made tech, even if consumers won’t. The defense sector, however, operates under different constraints than the consumer market. Procurement cycles are longer, regulatory hurdles are higher, and the emphasis is on reliability and compliance rather than cutting-edge features.
For now, the diver in Taiwan has already made her choice. The underwater camera in her bag isn’t a GoPro. It’s an Insta360, bought for half the price and twice the features. The device includes a modular design that allows for quick lens changes, built-in stabilization, and editing software that automatically generates highlight reels from hours of footage. These capabilities reflect a broader trend in consumer tech, where hardware and software are increasingly intertwined. The shift in the market isn’t just about cameras anymore. It’s about who gets to define the next generation of tech, and whether Western companies can adapt to a setting where innovation is no longer measured in years but in months.