If GoPro Inc (NASDAQ:GPRO) was hoping for a quick turnaround from Karma drone, what has come for the company is a disappointment. GoPro is recalling Karma from the market after it emerged that the drone was crashing because of power loss. The recall is likely to push up GoPro’s costs, which have already soared in the recent years as the company invested heavily in new products such as drones to diversify its revenue streams.

GoPro had sold 2,500 units of Karma before the need for the recall arose. A standalone Karma drone costs $800, but the cost goes up to more than $1,000 if bundled with a camera such as Hero 5 Black or Hero 5 Session and other accessories.

Delayed launch

But the launch of Karma was hit by problems early on. For instance, GoPro delayed the launch of the drone as it initially promised to make the Karma available on the market starting 1Q16 but only ended up releasing the drone in 4Q16. Even after the launch, GoPro said it was facing production challenges as it warned that it might not be in a position to meet the strong demand for its products during this holiday season. Holiday sales are important for GoPro as uptake of gadgets such as cameras tend to be strong and GoPro needs strong holiday sales to hit its lofty revenue target for the quarter.

GoPro has already done enough to discourage its customers and that could make it difficult for the company to meet its sales targets. However, GoPro itself remains upbeat about the future despite the missteps and setbacks it has suffered. A spokesman for the company said 2017 was shaping up to be a great year for the company as they anticipated strong demand for the Karma drone and the new Hero 5 camera. GoPro appears set to step up marketing efforts to undo the damage its missteps may have caused in its customer base.

Small problem for GoPro

Though GoPro hinged its turnaround on the success of Karma, the drone business is still only a small part of the company’s operations. Analysts were modeling that Karma would account for less than 10% of GoPro’s topline next year. As such, the Karma recall could be seen as only a small problem at this juncture.