Credit: Slashgear.com
If you are a drone fan, it’s likely that you are aware of what the French drone manufacturer Parrot has done for the industry. Parrot’s toy drones, which were simple to fly and packed with functionality, were its main selling point for casual drone lovers all over the world. Beginner drone fans frequently utilised Parrot’s drones before upgrading to more costly, advanced drones due to its low cost and simple-to-replace parts. It wouldn’t be incorrect to say that hundreds of skilled drone pilots began their careers with a Parrot drone for the same reason.
Considering how common Parrot’s toy drones were in the consumer drone market, the fact that they are no longer available may come as a surprise to many seasoned drone aficionados. What transpired to Parrot and its play drones, then? As it turns out, Parrot stopped manufacturing consumer drones in 2019. Let’s look into some of the potential causes of this.
Why did Parrot stop making toy drones?
Most people are unaware of the reasons why Parrot left the consumer drone industry in 2019, despite the fact that we all know it happened. The simplest explanation would be the Chinese drone manufacturer DJI’s absolute control of the consumer drone industry. With its well-liked Mavic, Spark, and Phantom drones, DJI commanded a dominant third of the consumer drone industry in 2018, a year before Parrot left the market. This pattern is still prevalent today. At the moment, Parrot’s financial condition was also not looking bright.
Instead, the head honchos at Parrot thought it was better off focusing its efforts in the commercial drone space, which had the potential to help them shore up the revenues. By July 2019, Parrot stepped away from the consumer drone space and focused all its attention on the commercial drone space.
How Parrot has fared since it stopped making consumer drones?
In hindsight, moving away from making consumer drones seems to have worked well for Parrot. Since exiting the space four years ago, the company has secured several tenders for its drones from governmental agencies across the globe. These agencies range from organizations manning borders, law enforcement agencies, and fire services. Some of this growth has also come in the backdrop of several organizations backing off from using Chinese-made drones thanks to growing concerns centered around cybersecurity and data transparency concerns.
The company’s ANAFI USA drone, which targets the defense markets, has also seen widespread deployment in several NATO countries, including the United States, the United Kingdom, France, Northern Europe, and Japan, resulting in improved revenue figures for Parrot. The company also seems to have benefited from the Russo-Ukrainian flare-up, which started in February 2022.
Data from Parrot’s most recent earnings report indicate that the sales of the company’s commercial microdrones, primarily the ANAFI for security (ANAFI USA) and inspection (ANAFI Ai), have risen by a significant 22%. In fact, revenue from the sale of these drones now accounts for more than 56% of the group’s total revenues.
In light of this data, it is evident that Parrot’s decision to exit the consumer drone market has worked well for the company, given its better financial position since 2018. It will be interesting to see if the company plans to re-enter the consumer drone space sometime in the future.
To reach the Global Drone News editorial team on your feedback, story ideas and pitches, contact us here.
