Chinese action camera brand Insta360 faces mounting pressure from surging chip costs driven by the artificial intelligence boom, which it said is proving more challenging than US tariffs as it expands in the American market.
Demand from AI companies has squeezed the supply of components Insta360 relies on and created a “critical” situation last year, co-founder Max Richter said in an interview with Nikkei Asia.
The cost increase will be difficult to predict because it depends on how long the AI investment cycle lasts, Richter said.
“It probably has a much bigger effect than the tariffs at this moment,” he said, adding that the price of chips is presently under control.
“At this moment we very much have set up a better risk management that we can diversify our suppliers,” he said.
The company works with such chip companies as Qualcomm and Ambarella, Richter said, but hopes to secure longer-term partnerships to manage supply risks, potentially by developing customized chipsets specifically for its cameras.
Industry executives have warned that the shortage of memory chips could extend into 2027, hitting consumer electronics. Spot prices for mainstream DRAM chips were up 700% on the year this past June, according to data from market research firm TrendForce.
Founded in 2015, Insta360 has become a world leader in 360-degree cameras. Its sales soared 74% on the year to RMB 9.74 billion (USD 1.4 billion) in 2025. Sales growth and premium prices have given Insta360 room to absorb higher components costs, but Richter acknowledged that the increases are eating into margins. He declined to share by how much but said there were no plans to raise prices.
US tariffs on goods from China, where the company manufactures most of its products, shot up to 145% at their highest last year. Even with the current effective US tariff rate on Chinese imports averaging around 23% according to the Penn Wharton Budget Model as of mid-July, Richter said North America remains the camera maker’s top priority.
Listed on Shanghai’s Star Market as Arashi Vision, the company relies heavily on international sales. Markets outside China account for 70% of sales, according to Richter.
The company will open a flagship store in New York City’s Times Square and branded stores in Tokyo and Munich before the end of the year. The goal is to have a wider customer reach as the company grows, Richter said.
In the US, Insta360 products are currently only available through authorized retailers and its online store. Its retail stores, mostly in Asia, have rapidly grown from five at the start of 2023 to 300.
Once known primarily for cameras aimed at outdoor enthusiasts and extreme-sports users, Insta360 has expanded into gimbals and other products aimed at travelers, families and content creators.
“Our products are not just being used as a niche product, but really entering mainstream use cases,” Richter said.
The company is also considering expanding its research and development centers to locations outside China, including the US It is currently trialing a team in Tokyo, Richter said.
With its growing portfolio, the company has been battling several lawsuits by rivals over patent claims. The International Trade Commission in February cleared Insta360 of infringing on GoPro utility patents but found that earlier versions of its products had violated a GoPro camera design patent. Insta360 is currently engaged in litigation with Chinese drone maker DJI, which alleges patent infringement on gimbals and cameras.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.
Note: RMB figures are converted to USD at rates of RMB 6.76 = USD 1 based on estimates as of August 12, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.