Summary of Key Points
Inkingstone and DJI were once like two parallel lines in the consumer imaging industry: DJI dominated the global drone market with annual revenues approaching 100 billion yuan and a market share of over 70%, while Inkingstone held a dominant position in the panoramic camera sector, maintaining the number one spot globally for six consecutive years. However, in 2025, Inkingstone sought to break through the growth constraints of its panoramic camera business by entering the drone market with the "Yingling A1" drone, directly challenging DJI's territory. In response, DJI launched the "Osmo 360" panoramic camera, aiming to take away Inkingstone's customer base. Since then, the two companies have engaged in a full-scale battle, with products being closely matched, price wars intensifying, mutual patent lawsuits, and supply chain disruptions. Although Inkingstone has seen rapid revenue growth (an 83% increase in the first quarter of 2026), its profits have been halved (a 52% decrease), and its stock price has plummeted by more than 65%. DJI, on the other hand, has managed to maintain its position thanks to its scale and supply chain advantages. The outcome of this battle between a giant and a newcomer is still uncertain—whether DJI will consolidate its market share or if Inkingstone will once again make a comeback from a niche.
1. How Did It Come to This?
For many years, DJI and Inkingstone operated in separate areas: DJI focused on drones, while Inkingstone specialized in panoramic cameras, each dominating their respective markets. Within DJI, Inkingstone was even considered a "healthy competitor." The turning point came in July 2025 when Inkingstone introduced the "Yingling A1" drone, aiming to expand into DJI's dominant drone market (with a much larger scale of 30 billion yuan compared to Inkingstone's panoramic camera market of just a few billion yuan). Three days later, DJI released the "Osmo 360," directly targeting Inkingstone's core business. This marked the beginning of a full-scale confrontation, with both companies competing in every aspect: product development, pricing, and intellectual property.
2. Full-Scale Battle: Product, Price, and Patent Warfare
This battle is all-out, with both sides fighting on multiple fronts:
- Intense Product Competition: Inkingstone released the "Luna Ultra" gimbal camera for 3999 yuan, and DJI responded with the "Pocket 4P" for 3799 yuan (200 yuan cheaper). When Inkingstone launched a panoramic drone, DJI introduced the "Avata 360" with panoramic capabilities.
- Fierce Price Wars: During the 2025 618 shopping festival, DJI reduced the prices of more than ten products by 2500 yuan, and Inkingstone followed suit, cutting the price of its flagship product by 1370 yuan. Inkingstone then tried to further reduce the price of the Luna Ultra through government subsidies and additional funding, but DJI released a competing model for 3799 yuan, forcing Inkingstone to lower its price even more.
- Patent Litigation: DJI first filed lawsuits in China, accusing Inkingstone of infringing on six drone patents, which Inkingstone countered with twenty-eight claims. DJI later sued Inkingstone for gimbal patent violations in the United States, and Inkingstone responded with five counterclaims. The battle expanded internationally, with both sides using patents as strategic tools to gain an advantage.
3. Inkingstone's Challenges
Despite its rapid revenue growth (an 83% increase in the first quarter of 2026), Inkingstone has faced significant challenges:
- Profit Decline: Revenue increased by 83%, but net profit plummeted by 52% to 84.62 million yuan.
- Stock Price Drop: The stock price, which reached a high of 377 yuan at its IPO, has now fallen to 137 yuan, a decrease of over 65%. This is due to both declining profits and the release of restricted shares one year after the IPO, potentially leading to selling by early investors.
- Supply Chain Disruptions: Inkingstone reported that thirty-three of its core suppliers were excluded from supply by DJI, forcing it to urgently switch suppliers and restructure its supply chain, resulting in additional costs.
4. Both Companies' Advantages
This battle is not one-sided, with each side having its strengths:
- DJI's Advantages:
- Large Scale: Revenues of 80 billion yuan in 2025 and a net profit of 20 billion yuan, more than eight times that of Inkingstone, giving it the financial resources for price wars.
- Self-Sourced Supply Chain: DJI can produce all components from chips to parts, reducing costs compared to Inkingstone.
- Lack of IPO Pressure: As a private company, it does not have the immediate financial reporting requirements that could limit its strategic options.
- Inkingstone's Advantages:
- Technological Edge: Innovations in AI panoramic algorithms and multi-target tracking technologies that DJI cannot easily replicate.
- User Community: A strong global community of UGC creators who share their content, enhancing product loyalty.
- Channel Partnerships: Exclusive partnerships with Apple stores and collaborations with Leica, boosting brand recognition.
Inkingstone's founder, Liu Jingkang, is no easy opponent; he has previously defeated competitors like Samsung, Ricoh, and GoPro in the panoramic camera market and was once described by DJI's founder, Wang Tao, as a formidable competitor.
5. What Will Be the Outcome?
Currently, DJI seems to have the upper hand, having taken a significant share of Inkingstone's market (from 91% to 57%) and selling more drones (30,000 units of the Yingling A1 in the first month compared to Inkingstone's 125,000 units of the Avata 360 in the same period). However, Inkingstone still holds a significant market share in panoramic cameras (67%) and possesses valuable long-term advantages in AI technology and user communities. Possible outcomes include:
- Best Case: Both companies work together to expand the market, perhaps by developing integrated products that combine panoramic cameras and drones.
- Middle Case: Inkingstone may see increased sales but lower profits, barely maintaining its position.
- Worst Case: Inkingstone's core business declines.
Liu Jingkang's aggressive approach suggests he might find new opportunities to turn the situation around. After all, in the hardware industry, no one remains a winner forever, and each product generation requires a fresh effort to gain market dominance. Ultimately, consumers will benefit from this competition, as it leads to lower prices and faster technological advancements.