Insta360 Innovation (688775) In-Depth Analysis: First-Sale Controversy of Its Drone and Prospects of the Second Growth Curve

Insta360 Innovation released its first panoramic drone—Antigravity A1—on December 4, 2025, with an official starting price of RMB 6,799. This product was highly anticipated by founder Liu Jingkang and hailed as a strategic product that “leaves a mark in technology history”. However, shortly after its launch, the product was caught in a public opinion storm, with doubts mainly focusing on two dimensions: the authenticity of sales data and product quality [1][2].

According to third-party monitoring data, Antigravity A1 sold approximately 1,500 units in the first 72 hours on three major e-commerce platforms (JD.com, Taobao, Douyin), corresponding to revenue of about RMB 10 million [1]. But founder Liu Jingkang issued an internal letter on December 8 to clarify, stating that “sales in China alone exceeded RMB 30 million within 48 hours” and that this result “can be benchmarked against mainstream mature models of competitors” [3]. The significant discrepancy between the two sets of data has sparked widespread discussion in the market about the accuracy of the company’s information disclosure.

More notably, product quality disputes have continued to ferment. Consumer feedback shows that Antigravity A1 has the following technical flaws: obvious color difference at the拼接处 of the dual fisheye lenses, edge resolution dropping by more than 30%, night shooting noise being 2.3 times that of competitors, and the image transmission system卡顿 at a distance of 200 meters [1]. These quality issues directly led to a large number of discounted transfer information on Xianyu (second-hand trading platform), with discount ranges generally between RMB 400 and 1,000, and the highest discount rate for brand-new unopened products reaching 12.6% [1].

Affected by this, Insta360 Innovation’s stock price plummeted by 8% at the opening on December 5, finally closing down 6.01% at RMB 262.56 [1]. It remained under pressure in the following trading days until it stabilized and rebounded on December 10, closing at RMB 262.47 with a slight increase of 2.38% [2].

Insta360 Innovation’s Q3 2025 financial report reveals that the company is in a critical period of strategic transformation. During the reporting period, the company achieved operating revenue of RMB 2.94 billion, a significant YoY increase of 92.64%; however, net profit attributable to shareholders was only RMB 272 million, a YoY decrease of 15.9% [1]. This “revenue growth without profit growth” financial feature reflects the company’s active choice to exchange short-term profits for long-term competitive advantages.

An in-depth analysis of the reasons for profit decline shows that the sharp rise in R&D expenses is the core factor. In Q3, the company’s R&D investment reached RMB 524 million, a YoY surge of 164.81%, with an R&D expense ratio of up to 17.8% [1]. This investment scale is almost twice the current net profit, and the company clearly stated that the funds are mainly used for “chip customization and strategic projects”, with the panoramic drone Antigravity project being the top priority. From a positive perspective, high R&D investment is a necessary means for tech companies to build a moat; but from the perspective of short-term performance, the time mismatch between R&D input and output inevitably erodes current profits.

Extending the time dimension to the first three quarters, the company achieved operating revenue of RMB 6.611 billion, a YoY increase of 67.18%, showing strong demand in the intelligent imaging equipment market; net profit attributable to shareholders was RMB 792 million, a YoY decrease of 5.95% [3]. The continuous lag of profit growth behind revenue growth indicates that the company is in a period of strategic investment, and profit pressure is a controllable phased phenomenon.

Key financial indicators show that the company’s asset quality remains healthy: gross profit margin remains at a high level, cash flow is stable, undistributed profit per share reaches RMB 8.1135, and net assets per share is RMB 14.28 [4]. The company’s asset-liability structure is reasonable, and financial risks are controllable, providing sufficient financial buffer space for subsequent strategic expansion.

From the perspective of industrial development laws, the transformation of consumer electronics companies from “trend-oriented” to “engineering-oriented” requires a long process of technical accumulation, which cannot be replaced by capital and marketing. Insta360’s choice to use panoramic drones as the second growth curve to enter DJI’s core territory is essentially a high-risk, high-return strategic gamble.

The company has been laying out drone-related patents since 2020, covering core links such as drone structure, propellers, and power systems [1]. This forward-looking layout reflects the management’s strategic vision, but it also means that a large amount of sunk costs need to be borne in the early stage. The current imbalance between R&D input and product output is a “growing pain” that all cross-border breakthroughs must experience.

Insta360 has long dominated the global consumer panoramic camera market, with a market share once exceeding 85% [1]. However, in Q3 2025, the market pattern changed dramatically. DJI launched its first panoramic camera Osmo360 in July 2025, and with its deep accumulation in imaging technology and brand influence, it gained 43% of the global market share in just three months [5].

According to the Jiuqian中台 report, Insta360’s global market share in panoramic cameras dropped sharply from the previous 85%-92% to 49% in Q3 2025, while DJI’s 43% share directly confronts it [1]. Although the Frost & Sullivan report gives different data (Insta360’s 75% market share), both reports convey the same signal: Insta360’s market dominance is being eroded by DJI [1].

DJI’s panoramic camera business is more of a complement to its product ecosystem rather than a strategic main direction. DJI’s core advantages lie in its over 70% share in the consumer drone market and its comprehensive layout of handheld imaging equipment. The rapid volume of Osmo360 is more of a “dimension reduction attack” achieved by leveraging existing channel, brand, and technical synergy advantages [5].

In the action camera market, DJI’s rise is even more rapid. According to the Jiuqian Consulting report, DJI is expected to occupy 66% of the action camera market share in Q3 2025 [5]. This data forms a sharp contrast with the situation in 2022 when GoPro occupied 84% of the share, and the industry pattern has undergone fundamental changes.

Insta360 actively entered the action camera market through products like AcePro2, but faced direct impact from DJI’s price war. DJI took the initiative to reduce the price of OsmoAction4 to around RMB 1,500, using an aggressive pricing strategy to争夺 market share [1]. Under the pressure of price wars, Insta360’s product pricing strategy faces a dilemma: following the price reduction will erode profits, while maintaining the price may lose market share.

As the pioneer of the action camera market, GoPro’s decline trajectory provides a profound warning for industry development. According to Jiuqian Consulting data, GoPro’s global market share in action cameras dropped sharply from 84% in 2022 to 18% in the first three quarters of 2025; in the panoramic camera field, its market share dropped from 21.5% in 2021 to 9.2% in 2023 [6].

As of December 22, 2025, GoPro’s market value is only $256 million, evaporating 98% from its historical high [6]. The “duel between two giants” between Insta360 Innovation and DJI is reshaping the industry pattern, while GoPro has been pushed to the edge of the table. This case deeply confirms the cruel law of the business world: pioneers do not automatically own the future; continuous product innovation and strategic evolution are the keys to enterprise longevity.

: Antigravity A1 is the world’s first 8K panoramic drone, with uniqueness in product form. The total weight of 249 grams complies with the registration-free flight regulations in most regions, reducing the user’s threshold for use. The supporting VR flight glasses and somatosensory remote control provide a differentiated immersive experience, which has innovative value in the consumer drone market [2].

: There is an obvious mismatch between product strength and pricing. Positioned as a productivity tool at a price of RMB 6,799, but the actual experience is closer to consumer entertainment; the lack of a 4G module limits remote flight scenarios; core technical indicators such as the拼接 quality of dual fisheye lenses and image transmission stability are behind competitors [1]. The discounted selling phenomenon in the second-hand market reflects insufficient consumer recognition of the product.

: The global consumer drone market scale continues to grow, and the China Commercial Industry Research Institute predicts that the Chinese market scale will reach RMB 50.22 billion in 2025 [3]. As a new category, panoramic drones theoretically have the possibility of opening up a blue ocean market. Overseas market certification processes are advancing, and international layout is expected to open up incremental space [3].

: DJI has deep technical accumulation, strong brand influence, and perfect channel network in the drone field. As a new entrant, Insta360 needs to face DJI’s possible targeted competition strategies. If product quality issues cannot be solved in time, it will seriously damage brand reputation and affect long-term sales.

The strategic logic of Insta360 Innovation to open up the second growth curve is clear: relying on technical accumulation in the panoramic imaging field, extending to the drone field to form a complete ecological closed loop of intelligent imaging equipment. However, there are multiple obstacles to cross from strategic logic to commercial success.

First, there is a significant gap in technical capabilities. The core technologies of drones include flight control systems, power systems, image transmission systems, obstacle avoidance algorithms, etc. Although these are related to panoramic camera technologies, they are significantly different. Although Insta360’s patent layout in the drone field is early, the technical precipitation time is still short, and product maturity needs market testing [1].

Second, the market competition pattern is extremely unfavorable to latecomers. DJI’s dominant position in the global consumer drone market is stable, and its technical iteration speed, cost control capabilities, and channel coverage density are top in the industry. For Insta360 to compete head-on in this field, it needs to invest huge resources and time costs.

Third, product quality is the lifeline of brand reputation. The quality issues exposed by Antigravity A1 at launch will cause lasting damage to the brand image if not systematically solved. In the era of social media, the spread speed of negative experiences is far faster than traditional channels; building product reputation requires long-term accumulation, but it can be destroyed in an instant.

Based on the above analysis, we make the following judgments on the prospects of Insta360 Innovation’s second growth curve:

From a short-term perspective (within 6 months), Antigravity A1’s sales performance did not meet market expectations, product quality issues need time to solve, and stock price pressure will continue. The huge gap between the “RMB 30 million sales in 48 hours” claimed by the founder and third-party monitoring data also reflects that the company has room for improvement in information disclosure and market expectation management.

From a medium-term perspective (6-18 months), if Insta360 can quickly respond to market feedback, complete product iteration and optimization, and promote overseas market certification and sales, the second growth curve still has the possibility of success. Key observation indicators include: quality improvement of subsequent products, continuous verification of sales data, and whether the company can establish differentiated competitive advantages in the drone field.

From a long-term perspective (more than 18 months), the success of the second growth curve depends on whether Insta360 can build a real technical moat and brand awareness in the drone field. This requires continuous high R&D investment, accurate product positioning, and agile response to market changes. It is too early to assert that the “second growth curve is broken”, but the probability of success is decreasing.

As a leading enterprise in the intelligent imaging equipment field, Insta360 Innovation’s basic business remains stable. The 67.18% revenue growth rate in the first three quarters proves that market demand is still strong, and the company’s technical accumulation and brand advantages in panoramic cameras and action cameras cannot be completely replaced in the short term.

However, the company is in a critical window of strategic transformation, and the input-output ratio of the drone business is highly uncertain. DJI’s strong competition has shaken Insta360’s monopoly position in the panoramic camera market, and the “revenue growth without profit growth” situation may continue for some time.

: DJI’s continuous efforts in the panoramic camera and action camera fields will put continuous pressure on Insta360’s core business. If market share further declines, it may affect the company’s revenue growth and brand premium capabilities.

: Antigravity A1, as the company’s first product entering the drone field, has highly uncertain market performance. If product quality issues cannot be effectively solved, or product sales remain sluggish, it may lead to unrecoverable R&D investment and negative impact on the company’s reputation.

: There is a significant discrepancy between official sales data and third-party monitoring data. Investors need to pay attention to information screening and follow the company’s subsequent official disclosures and performance explanations.

: The company’s stock price soared by 274% on its first day of listing, with a market value once exceeding RMB 120 billion. The current valuation includes high growth expectations. If performance growth slows or strategic transformation encounters obstacles, it may face valuation correction pressure.

Considering the company’s fundamental situation, changes in the competition pattern, and the uncertainty of the second growth curve, we give Insta360 Innovation a

rating and recommend investors to pay close attention to the following catalysts:

1. Verification of subsequent sales data of Antigravity A1
2. Improvement measures and effects of the company on product quality issues
3. Progress of overseas market expansion
4. Q4 and full-year performance
5. Subsequent evolution of DJI’s competition strategy

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[1] Phoenix New Media - “Panoramic Drone’s First Sale Frustrated, Is Insta360’s Cross-Border Failure Emerging?” (https://h5.ifeng.com/c/vivoArticle/v002QbjuOFkE1b5tPQ04gGe79K--FWKnUACDRcfEYY-_2XTEE__?isNews=1&showComments=0)

[2] 36Kr - “Exploring the Mystery of Insta360 Drone Sales: More Than 1,000 Units Sold on Three Major E-Commerce Platforms” (https://m.36kr.com/p/3590602816716802)

[3] Securities Times Network - “Insta360 Founder Responds to External Doubts - The New Product’s Poor Launch Is Not True, Selling RMB 30 Million in Two Days” (https://www.stcn.com/article/detail/3532865.html)

[4] Sohu Securities - Insta360 Innovation (688775) Company Information (https://q.stock.sohu.com/cn/688775/information.shtml?type=100)

[5] Sina Finance - “DJI’s ‘Money Printing Machine’ Is Targeted by Mobile Phone Manufacturers” (https://finance.sina.com.cn/tech/roll/2025-12-21/doc-inhcpzyf5501352.shtml)

[6] Sina Finance - “Insta360 and DJI Surge Forward, GoPro’s Heroic End” (https://finance.sina.com.cn/roll/2025-12-24/doc-inhcwafu0062063.shtml)