Core Viewpoint - The recent comments by Liu Jingkang, founder and chairman of Insta360, regarding DJI's price cuts have sparked significant attention in the tech and capital markets, leading to a public relations crisis for both companies [1][2]. Group 1: Company Actions and Reactions - Liu Jingkang acknowledged the controversy surrounding his previous comments and promised to provide compensation to customers who purchased DJI products during a specific period [1][2]. - DJI announced substantial price reductions on several products, with discounts exceeding 1,000 yuan, as part of a regular promotional strategy for the upcoming Double Eleven shopping festival [5][14]. - Liu's social media post has garnered over 12,000 shares, 4,000 comments, and 3,000 likes, indicating rising public interest [3]. Group 2: Competitive Landscape - Insta360 holds a 67.2% market share in the consumer-grade panoramic camera sector, maintaining its position as the global leader for six consecutive years, while DJI dominates the consumer drone market with over 70% market share [6][10]. - Both companies have recently launched products targeting each other's core markets, with Insta360 releasing its first consumer-grade panoramic drone, the Antigravity A1, and DJI launching its Osmo 360 panoramic camera shortly after [10][14]. Group 3: Financial Performance and Market Challenges - Insta360's financial data reveals a growth anxiety, with a 51.17% increase in revenue to 3.671 billion yuan in the first half of 2025, but only a 0.25% increase in net profit, indicating pressure on profitability [11][13]. - The company's sales and R&D expenses have surged, with sales expenses rising by 75.46% and R&D expenses by 100.35%, outpacing revenue growth [13]. - Inventory levels have increased significantly, with stock nearing 1.5 billion yuan, a 156.87% rise year-on-year, reflecting operational challenges [13][14]. Group 4: Market Dynamics - The global panoramic camera market is estimated at 5.03 billion yuan, while the consumer drone market is approximately 51.1 billion yuan, highlighting the larger growth potential in the drone sector [11][14]. - Insta360's shift towards the drone market is seen as a strategic move to counteract stagnation in the panoramic camera market, which is nearing saturation [14].