In recent years, the consumer drone market has been dominated by DJI, a global leader with around 70% market share. In late March 2016, DJI entered the agricultural drone sector, marking its first major move into this specialized field. By the end of 2017, the company launched new agricultural drones, employing an aggressive pricing strategy that significantly captured market attention and sparked criticism from competitors. This approach raised concerns about after-sales support and long-term sustainability in the industry.
According to reports, DJI introduced three models in December 2017: the MG-1S Advanced, MG-1P, and the MG-1P RTK (Real-Time Kinematic) version. These drones are capable of performing crop monitoring, irrigation management, and pesticide spraying. Despite not yet turning a profit in the agricultural drone segment, DJI claimed to hold nearly 70% of the mainland market share, underscoring its strong position in the industry.
What worries many in the sector is DJI’s overall price-cutting strategy, with the new models being 12% cheaper than the November 2016 release. Additionally, DJI offered early access to DroneDJ’s Phantom 4 RTK, suggesting potential future expansion into the agricultural market. Although no official details on pricing or timelines were released, it is speculated that this model could be tailored for agricultural use, offering advanced RTK capabilities.
Hanwu Airlines from the mainland noted that DJI’s low-cost strategy has had a significant impact on the market. Their UAVs, which run on gasoline, face stiff competition from DJI’s battery-powered alternatives, which are priced three to four times lower. However, Anyang Quanfeng Aviation Plant Protection Technology believes that as the industry evolves, the focus will shift toward performance and efficiency rather than just device cost.
DJI’s aggressive pricing has drawn sharp criticism from other players in the agricultural drone market. Many argue that such a strategy undermines essential services like training and customer support. Moreover, DJI has previously faced accusations of using predatory pricing to gain market dominance. In 2015, the company reportedly cut prices by 70%, forcing competitors like Yuncee Xiang, French Parrot, and U.S. firm 3D Robotics out of the market due to their inability to match the low costs.
As a result, DJI was able to sell its Category One unmanned aircraft system (UAS) in the U.S. for approximately $900, while similar products from other manufacturers were priced at around $1,500. This price gap highlights the intense competition and strategic moves by DJI to maintain its leadership in the drone industry.
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