Source | Bohu Finance (bohuFN)

Author | All too well

The clash between DJI and Insta360 has taken on a dramatic tone.

On June 9, Insta360 launched its Luna series handheld gimbal cameras in the U.S., entering the gimbal camera market where DJI has deep roots.

DJI responded aggressively.

On June 10 and 11, DJI and its Osmo brand filed patent infringement lawsuits against Insta360 and its affiliates in the U.S. District Court for the Eastern District of Texas. The claims sought a permanent injunction, requiring Insta360 to return infringement profits, pay damages, and cover legal fees.

Insta360 was undeterred and immediately filed counterclaims with identical demands.

However, on July 3, both DJI and Insta360 withdrew their U.S. lawsuits. According to Caixin, the withdrawal was related to intervention by domestic government authorities. Nevertheless, the dispute did not end there, as the legal battle shifted from overseas to domestic courts.

How did this all happen?

01 The Battle Began Early

DJI and Insta360 have long been on opposing sides. For a long time, despite operating in the consumer imaging industry, the two companies had little overlap.

DJI has virtually defined the consumer drone market, maintaining a global market share of over 70% for years. It later expanded into handheld imaging devices with products like the Osmo Action sports camera and Osmo Pocket gimbal camera. The Pocket series has sold over 10 million units, becoming a new growth engine. According to Lei Feng Network, DJI's revenue is expected to reach RMB 85-90 billion in 2025.

In contrast, Insta360 has played the role of challenger. It continuously enters proven markets, takes on industry leaders, and accumulates capabilities. It achieved global leadership in both 360-degree cameras and thumb cameras using the same strategy. In 2025, Insta360's annual revenue reached RMB 9.9 billion, with a net profit attributable to shareholders of RMB 964 million.

In the past, there was sufficient demand growth in drones, action cameras, and 360-degree cameras. DJI dominated the skies while Insta360 focused on the ground, with little interference between them. However, as the consumer imaging market entered a phase of stock competition (stock competition) with fewer new growth opportunities, entering each other's core markets became the most direct way to find a second growth curve.

The first intersection occurred in late 2023 when Insta360 launched its Ace series wide-angle action cameras, entering the action camera market dominated by GoPro Hero and DJI Osmo Action.

By the second half of 2025, open conflict had begun.

In July, DJI released its first 8K 360-degree camera, the Osmo 360, priced at RMB 2,999—nearly RMB 800 lower than Insta360's flagship product at the time. DJI directly entered Insta360's core market with a price advantage. Simultaneously, DJI lowered prices on multiple products, sparking a price war in the handheld imaging market through its supply chain cost advantages.

Insta360's counterattack was swift. On December 4, it released the Yingling A1 drone, claiming to "redefine aerial photography," directly entering DJI's core drone market.

The competition quickly extended from products to patents, talent, and supply chains.

In March, DJI filed a lawsuit in Shenzhen Intermediate People's Court, claiming ownership of six core patents related to flight control, structure, and image processing. DJI alleged that several former key R&D personnel filed related patent applications within a year of leaving the company, arguing that the technologies were work-related inventions. Insta360 responded that the patents were independently developed by employees after joining Insta360, with the entire R&D process being legal and compliant.

Meanwhile, competition for talent intensified. In recent years, Insta360 has continuously attracted R&D personnel from DJI, luring multiple core technical talents with higher salaries and equity incentives.

Supply chain competition also persisted. Insta360 founder Liu Jingkang revealed in an internal letter that six months before the launch of its 360-degree drone, the Yingling, 33 core suppliers faced exclusive cooperation pressures involving optical lenses, structural components, chips, and other key areas.

The intensifying clashes between the two were inevitable, as seen in this case.

02 Why Did DJI React So Strongly This Time?

For DJI, the Pocket series has become increasingly important.

The consumer drone market has limited upside. As early as 2016, DJI founder Frank Wang judged that the drone market would soon reach saturation, with DJI's revenue likely capping at around RMB 20 billion. A more pressing issue is that drones are facing increasing regulatory constraints. Starting January 1, 2026, China's drone industry will face the strictest regulatory rules yet, effectively raising the barrier to entry for consumer drones and potentially impacting DJI's sales directly.

Over the years, DJI has been seeking a second growth curve, with gimbal cameras being its most successful venture.

With excellent stabilization, portability, and video shooting capabilities, the Pocket series has become an essential tool for short video creators, helping to popularize gimbal cameras among mainstream consumers.

Public data shows that in 2024, Pocket 3 sales reached 5 million units, generating nearly RMB 20 billion in revenue. By last year, cumulative sales of the Pocket 3 had surpassed 10 million units. The profit per Pocket 3 unit is comparable to that of a dozen domestic Android smartphones, making it a crucial pillar of DJI's consumer imaging business.

More critically, the product has long operated "without real competitors." As mentioned by LatePost, a hardware company executive who in-depth study (deeply researched) DJI's Pocket 3 noted that DJI has built a formidable moat in the pocket gimbal camera market. "We knew it was difficult before, but after trying, we realized it was especially hard." The Pocket series has faced no true competitors, maintaining firm pricing with few intentional price reductions.

But such success inevitably attracts envy.

Insta360 struck first. It precisely targeted DJI's product weaknesses, leveraging differentiators like a detachable remote screen, Leica dual cameras, and an AI imaging chip to successfully ignite the high-end handheld camera market, generating significant online buzz. After the Luna Ultra's release, it was frequently compared head-to-head with the Pocket series on social media platforms—the first time a true challenger to DJI's Pocket series had emerged in the gimbal camera market.

The data backs this up: the Luna Ultra sold out within five minutes of its release and ranked first in sales across all platforms on its launch day.

To counter the competition, DJI significantly altered its product strategy.

It released the Osmo 360 panoramic action camera in late July 2025 and the Osmo Nano thumb camera in late September, entering Insta360's traditional strongholds. DJI also lowered prices on multiple products and accelerated the release of new models like the Pocket 4 and Pocket 4P.

On March 26, 2026, DJI released its first panoramic drone, the Avata 360, targeting Insta360's Yingling Antigravity A1 panoramic drone, which had launched in early December 2025. Priced at RMB 6,799, the Antigravity A1 faced clear price pressure from the Avata 360, priced at RMB 2,788.

Such product cadence and pricing strategies were uncommon for DJI in the past.

Overseas markets cannot be ignored.

Both DJI and Insta360 are strong performers in global markets. In 2025, Insta360's overseas revenue accounted for 69% of its total. DJI holds over 70% of the global consumer drone market share. However, in late 2025, the U.S. FCC added foreign-produced drone systems and key components to its regulated list, impacting DJI. As a result, the Pocket 4 and subsequent Pocket 4P could not enter the U.S. market, leaving only the older Pocket 3 available. Insta360, unaffected by this policy, could sell its Luna series normally in the U.S.

This explains why DJI reacted so strongly this time.

But now, Insta360 appears to be suffering more.

03 Insta360: When It Rains, It Pours

Insta360 seems to be the more heavily impacted party.

While the Luna Ultra has received positive feedback on social media, it currently ranks eighth on JD.com's best-selling gimbal camera list. More notably, positions 1-17 on the list (excluding the Luna Ultra) are dominated by DJI models.

More critically, DJI holds pricing power in the industry. By lowering prices on the Pocket 4P, DJI has pushed down the price floor for high-end gimbal cameras, severely compressing industry profit margins. If Insta360 follows suit, its profits will decline further. Maintaining original pricing seems untenable.

Even more daunting is DJI's iteration speed, as demonstrated by the rapid release of the Pocket 4P, closely following its predecessor. Faced with DJI's saturated multi-category, full-price-range suppression, breaking through with the Luna Ultra will be difficult.

Regarding Insta360's first drone product, the Yingling A1, launched in May 2025, internal reports claimed RMB 30 million in sales within 48 hours. However, it does not appear in JD.com's top 30 best-selling aerial photography drones, while DJI's drone series dominates the best-seller, top-rated, and repurchase lists—a formidable presence.

In Insta360's core 360-degree camera market, DJI's first 360-degree camera, the Osmo 360, captured about 49% of China's e-commerce market share and 43% globally within three months of its launch, reducing Insta360's previous 85%-90% market dominance to a near-even split.

Insta360 management has disputed some third-party data. For reference, according to IDG statistics, DJI's 360-degree camera market share exceeded 35% in Q4 2025.

These competitive shifts have begun affecting financial performance. According to Insta360's latest 2025 annual report and 2026 Q1 financial results, the company achieved RMB 9.7 billion in revenue in 2025, up 75% YoY, but net profit attributable to shareholders fell 7% YoY to RMB 929 million. In Q1 2026, revenue grew 83% YoY, but net profit dropped 52% YoY to RMB 84.62 million.

With its core business facing intensifying competition and sustained profit pressures, market expectations for its earnings stability have fluctuated.

For Insta360, which desperately needs new growth drivers, this is clearly unwelcome news.

04 Epilogue

Insta360's brand slogan is "Think Bold," and the company lives up to it.

The fierce competition between DJI and Insta360 over the past year has been positive for the industry and consumers. By continuously encroaching on each other's core markets, DJI—which once faced little real competitive pressure—has been forced to accelerate iteration, adjust pricing, and abandon reliance on industry dividend . The eradication of monopoly premiums ultimately benefits consumers, who can now buy better products at lower prices.

Daring to challenge stronger rivals deserves respect, but it does not guarantee victory.

Referenced Sources:

1. LatePost: Interview with Insta360's Liu Jingkang: "This Is Also a Form of Extreme Sport"

2. Caixin: After Government Intervention, DJI and Insta360 Withdraw U.S. Lawsuits; Patent Dispute Shifts to Domestic Courts

3. Caixin: DJI-Insta360 Competition Escalates: Mutual Patent Infringement Lawsuits Filed in U.S.

4. Zhihu Overseas Traffic Mysticism Research: How to View the Competition Between DJI and Insta360? What Are Their Strengths and Weaknesses?

5. Dingjiao ONE: DJI and Insta360 Have Been Fighting for a Year—Who Is More Anxious?

6. Sina Technology: "National Subsidy" Controversy Hits Insta360: Major Shareholders Sell Off, Market Value Plunges Over 60%, New Models Sell Out Online, Liu Jingkang Faces "Critical Year"

7. Zhiewei: Does Insta360 Want to Become the Next DJI?

8. LatePost: The 13-Year History of Gimbal Cameras: Giants' Trial and Error, Leadership, and a New Round of Covert Warfare

9. Xinhua Net: Business Observation | DJI-Insta360 Patent Case: Innovation Protection Challenges Arising from Talent Mobility

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