Insta360 targets mainstream after profits fall 10 percent

Pocket camera maker Insta360 is launching its Leica co-developed Luna series to chase mainstream consumers after 2025 results showed a 10 percent drop in net profit to 886 million yuan, despite revenue surging over 70 percent to 9.74 billion yuan. The move escalates its rivalry with market leader DJI, which recently cut the price of its own pocket gimbal.

"The leaked figures referred to overseas pricing," Insta360 CEO Liu Jingkang said on Weibo, clarifying that the new Luna Ultra's domestic price in China would be "noticeably lower" than the roughly $780 suggested by early leaks.

The flagship Luna Ultra reportedly features a 1-inch main sensor, a 3x optical telephoto lens, and a detachable OLED screen that functions as a wireless remote. It aims to compete directly with DJI’s new Osmo Pocket 4, which launched at 2,999 yuan, a 500 yuan price cut from its predecessor.

The strategic shift pits Insta360 against not only DJI but also phone makers like OPPO and vivo, which are entering the category. Success for the privately-held company depends on whether its brand-building efforts can justify premium pricing and reverse margin pressure from rising component costs and a 96.95 percent jump in R&D spending.

A Widening Battlefield

Insta360's financial results reveal the central challenge facing the company: while it approaches 10 billion yuan in annual sales, profitability is shrinking. The pressure comes from increasingly fierce competition in the consumer electronics space and rising costs for core components like the 5-nanometer chips it adopted in 2025. This has forced the company to find a new balance between sales volume, market share, and profit margins.

The pocket gimbal market, once a niche for videographers, is now a crowded battlefield. DJI's Osmo Pocket 3 was a breakout success, proving the mainstream potential of the category. In response, DJI priced its newer Pocket 4 more aggressively. Now, mobile phone giants like OPPO and vivo are preparing to launch similar cameras, further intensifying the competition for consumer attention.

From Niche Fans to Mass Market

To break out of the enthusiast niche, Insta360 is shifting its playbook from a product-led approach to a brand- and channel-focused strategy. The company has signed actor Li Xian as its first global brand ambassador to promote the new Luna camera, a clear attempt to reach a broader audience beyond tech circles.

Alongside the celebrity endorsement, Insta360 is making a significant investment in its physical retail footprint. In China, the strategy involves opening larger flagship stores, such as expanding its Shenzhen location to over 100 square meters. For overseas markets, the focus is on increasing visibility by opening more stores in high-traffic locations, with plans for a store in New York's Times Square. This dual push into brand marketing and offline channels is a critical test of whether Insta360 can become a household name.

The success of the Luna and the new mainstream strategy will be a key indicator for investors watching the consumer hardware space. While Insta360 remains privately held, its ability to compete with established players like DJI and fend off new entrants from the smartphone world will determine if it can sustain its high-growth trajectory while restoring profitability. The company's heavy investment in R&D and marketing signals a long-term bet on capturing a significant share of this growing market.

This article is for informational purposes only and does not constitute investment advice.