Software Revenue Does Not Undercut DJI's Monopoly Position
Everyone knows that DJI dominates the drone market and that competitors are struggling on the platform front. It is also well known that software service providers for drones took a hit in 2018 with the closure of Airware. Why has the drone market evolved in such a way?
It begins with the macroeconomics behind DJI’s remarkable rise. In 2015, when the hype about consumer drones was at its nadir, DJI’s profile was comparable to that of American drone manufacturers like 3D Robotics (3DR). Due to a number of factors, DJI experienced transformative growth while others floundered. 3DR had to cease the production of their drone platform due to technical issues and poor sales, while more established platform manufacturers like France-based Parrot continue to post disappointing financial returns.
What makes DJI preferable? It is not its price point, for one thing. Its drones have consistently received better customer fee...
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