Amid profit pressures and market competition, Insta360's new X4 Air model strategically targets female users—but is this the right solution?
When two consulting firms present conflicting market share reports for the same sector, it signals that Insta360 and DJI's battle over 360-degree cameras has expanded from technology and pricing to the court of public opinion.
On October 27, JQ Consulting released a report claiming DJI's Osmo held a 43% share in the 360-camera market, with nearly 70% dominance in action cameras. Insta360 executives later dismissed third-party data accuracy during their Q3 earnings call. Meanwhile, Frost & Sullivan reported Insta360 maintained its global leadership in consumer 360 cameras for eight consecutive years, with over 85% market share in Q1-Q3 2025.
The data war reflects intensifying competition between these imaging giants. Insta360, valued at over ¥100 billion since its IPO, faces growing challenges from DJI, which launched the Osmo 360 in July—a direct competitor to Insta360's X5 at lower pricing. Insta360 retaliated by announcing drone development in August.
This rivalry has impacted Insta360's financials. Its Q3 report showed revenue growth without corresponding profit increases, prompting strategic shifts. On October 28, Insta360 broke its annual flagship release cycle, unveiling the X4 Air just six months after the X5 launch.
The X4 Air's design reveals a deliberate pivot toward female consumers: lighter (165g, matching iPhone Air), compact (11cm length), and featuring enhanced portrait modes over technical features like "bullet time" slow-motion. Priced aggressively at ¥2,399 (post-discounts under ¥1,999), it sacrifices some specs—smaller sensor (1/1.8" vs X5's 1/1.28"), reduced 29MP photos (vs 72MP), and no night mode—earning the "sunlight camera" nickname.
Historically reliant on male-dominated professional users, Insta360 now seeks broader adoption. The move stems from financial pressures: Q1-Q3 2025 revenue grew 67.2% to ¥6.61 billion, but net profit fell 6% to ¥792 million, with Q3 profit dropping 20.83% sequentially. Declining gross margins (49.6% vs 53.8%) and doubled R&D/sales expenses (including drone development and 50% store expansion to 195 locations) necessitate new revenue streams.
Competitive threats compound these challenges. DJI's Osmo 360 employs square sensors for better low-light performance, while GoPro's Max 2 emphasizes native 8K resolution. Insta360 differentiates through user-friendly software (auto-editing, color-grading) and hardware innovations like swappable lenses.
However, targeting women presents hurdles. As a "vlog tool," the X4 Air competes with smartphone cameras (like Vivo X300's superior night capabilities) and isn't yet a daily essential. Brand perception remains another barrier—users like outdoor enthusiast "Kitten" still associate Insta360 with technical male users, contrasting with Xiaomi's successful female-focused rebranding (evident in its near 50% female car buyers).
Insta360 CEO Liu Jingkang views competition with DJI as mutually beneficial for market expansion. While the imaging sector's competition intensifies, Insta360's exploration of new demographics like female users could create growth beyond zero-sum battles with rivals.