From Niche Rivalry to Full-Blown Conflict: The Escalating Clash Between Insta360 and DJI

With a mere five-day gap, Insta360 unveiled the Luna Ultra, only to be swiftly followed by DJI's launch of the Pocket 4P. This marked the first time the handheld gimbal market truly sparked to life. Despite DJI's overwhelming dominance in this category, many contend that without Insta360's Luna breaking new ground, users might still be clinging to their Pocket 3s. This time around, DJI fortified its position with dual-camera telephoto capabilities and a more budget-friendly price tag.

The ongoing "encroachment" between the two tech giants has been a central theme since last year. Their product portfolios are increasingly overlapping, with retail stores even cropping up in close proximity. Beyond the products themselves, battles over public opinion, patent disputes, and the even more subtle competition within the supply chain are rampant.

The tale of David and Goliath is playing out in Shenzhen's tech landscape.

Luna Ultra vs Pocket 4: Who Will Reign Supreme?

In the handheld gimbal arena, whether it's Insta360 or later entrants like Vivo, the best they can aspire to is to carve out a niche from DJI's stronghold. Few anticipate a complete overthrow of DJI's reign.

DJI has been a stalwart in the handheld gimbal business for eight years. This segment has become another major revenue stream alongside its drones, with the Osmo Pocket's design effectively setting the standard for the category.

DJI doesn't just possess a first-mover advantage in handheld gimbals—it wields authority that defines the category.

Without DJI, the handheld gimbal market might not have attracted so many hardware manufacturers. Since the Pocket 3's release in October 2023 through to the Pocket 4's launch in April 2026, the product has sold over 10 million units, potentially raking in 50 billion yuan in revenue. According to Lei Feng Network, handheld products contribute over half of DJI's total revenue, which stands at 85-90 billion yuan.

The Pocket 3's meteoric rise created an entirely new market segment. According to IDC data, global shipments of handheld smart cameras (including action, panoramic, and gimbal cameras) reached 16.65 million units in 2025, marking an 83% year-on-year increase, with sales exceeding 46.1 billion yuan, up 86% year-on-year. A single blockbuster product can fuel the growth of an entire category.

DJI's dominance has left other manufacturers envious. Shenzhen-based smartphone giants OPPO, Vivo, and Honor are all forging ahead with Pocket-like projects, but the first product to truly challenge DJI came—as expected—from Insta360.

Yet, DJI's Pocket remains unassailable.

The Pocket 4 sparked a buying frenzy upon its release. In Japan, it captured 21.5% of the local video camera market within just nine days of launch. Domestically, it sold out instantly, with month-long backorders becoming the norm—a pattern established during the Pocket 3 era. Unless customers were willing to pay a premium or got lucky, securing a unit at launch was nearly impossible.

A DJI spokesperson stated, "We will release inventory across all channels as soon as it's available. Pocket 3 production ramped up continuously throughout its first year, with monthly capacity doubling repeatedly. Pocket 4 orders surged, prompting emergency factory output increases. Shortages stem from market enthusiasm far exceeding initial sales forecasts."

DJI Pocket 4P

Thus, DJI faces Insta360's challenge with confidence.

Firstly, the Pocket 4 standard and complete sets are priced 500 and 700 yuan lower than the Pocket 3, respectively. By maintaining quality while cutting prices, DJI compresses profit margins to exert pressure on competitors—a tactic it has employed in panoramic drones and action cameras. DJI can undercut Insta360's pricing while remaining competitive.

Secondly, DJI dictates the product release timeline. By launching the dual-camera Pocket 4P just five days after Insta360's announcement, DJI demonstrated that its product was ready long ago, waiting for competitors to make the first move before countering with targeted measures. DJI's strategy leaves rivals gasping for air.

Amid this challenging market, the Luna Ultra sold out within five minutes of its domestic e-commerce launch. According to Insta360's response on its investor platform, Luna Ultra topped global multi-platform sales charts on its debut day, including Douyin's gimbal camera sales ranking, JD.com's action camera sales ranking, Tmall's livestream sales ranking, and Amazon US's camera Best Seller list.

While data remains unclear, it's evident that consumers are seeking alternatives beyond DJI. Especially given DJI's persistent stock shortages, other brands' offerings become crucial.

Nearly every influencer compares the two products, dissecting their differences across various scenarios. Insta360 has indeed carved out a unique identity.

With dual Leica optical lenses, 8K Dolby Vision, an AI imaging chip, and 4K60fps high-spec video recording, along with a detachable image transmission remote screen, Insta360 differentiates itself from DJI in software and algorithms—a smart strategy. By entering DJI's territory, Insta360 doesn't aim to outdo DJI but to offer something distinct, much like its approach with panoramic drones.

The detachable screen is particularly noteworthy. Insta360 consistently finds new selling points in seemingly innovation-exhausted products. The detachable remote screen addresses solo creators' framing challenges and aids couples' travel photography. Insta360's strength lies in understanding user needs and niche scenarios—a methodology that helped it defeat GoPro and now defines its product development.

Insta360 Luna Ultra

Reports indicate that Insta360 maintains a dedicated user insights team upstream of marketing to identify new scenarios and demands.

Insta360 doesn't just want to scavenge DJI's leftovers—it aims to bring new value to the market, the only viable path for latecomers in saturated sectors.

DJI is undoubtedly a behemoth, but Insta360 isn't just throwing stones at a titan.

Unequal Competition, Close-Quarters Combat

The straight-line distance between DJI and Insta360's Shenzhen headquarters is just about 10 kilometers. This is a battle fought at close quarters.

On June 9, Insta360 launched the Luna series handheld gimbal camera in the US. The next day, DJI filed a patent infringement lawsuit against Insta360 and its affiliates in local US courts. Insta360 countered with a patent lawsuit on June 12. Such "patent wars" are common in the tech industry but rarely topple opponents directly, though they disrupt rhythms and build public opinion advantages.

Behind these "extra-curricular" moves lies a full-scale product war.

Last year, Insta360's first drone, the Link A1, entered DJI's uncontested airspace but emphasized panoramic shooting, creating a "new" category without colliding with DJI's existing drone lineup. DJI soon responded with the lower-priced Avata 360 panoramic drone, demonstrating its might to Insta360.

According to Caijing, DJI's consumer drone market share slipped from its peak of around 85% but remains above 70%. Media analysis attributes the decline to brands like XAG targeting entry-level markets. However, Insta360 isn't pursuing entry-level products—it's taking a harder path.

The Link A1 claimed 30,000 shipments in its debut month, but Avata 360 surpassed 125,000 global shipments in over a month, generating over 500 million yuan in sales and capturing over 98% of the panoramic drone market. Insta360's attempt to carve a niche was firmly countered by DJI. Reports suggest Insta360 plans to release more drone products under its brand, continuing its head-on clash with DJI.

While DJI gradually encroaches on Insta360's territory, Insta360 struggles to find effective countermeasures in DJI's home turf (whether Luna can break through remains to be seen). Amid intense media coverage of the "war" between DJI and Insta360, the companies' competition has never been on equal footing.

An investor interviewed stated, "Pitting a vertical category champion against a giant with proprietary flight control, visual algorithms, and a complete supply chain lacks strategic depth comparability."

DJI's revenue is roughly eight times that of Insta360.

To combat DJI, Insta360 has paid a heavy price. In 2025, its revenue surged 75.76% year-on-year, but net profit dropped 6.62%. In Q1 2026, net profit plummeted 52.02%. Soaring R&D and marketing expenses dragged down profits. In 2025, R&D spending reached 1.53 billion yuan, equaling the previous three years' total. Marketing expenses hit 1.679 billion yuan, more than doubling year-on-year.

Liu Jingkang told shareholders, "Over the past year, beyond existing product lines, Insta360 strategically invested in R&D for two drones including the Link A1, gimbal cameras, wireless lavalier microphones, and three other categories, while custom-developing three chips."

For Insta360, the urgent task is finding its rhythm amid direct competition with DJI. Competing as an underdog necessitates heavy R&D and marketing investment, but when returns materialize tests Liu's strategic vision and execution. Without returns, the smaller party will collapse first—after all, pricing power lies with the giant. A price war would be suicidal for the smaller competitor.

Evidently, Luna carries Insta360's hopes for "monetization" and "profitability." This product must succeed, not fail.

In 2026, this underdog battle promises to intensify further.