DJI shipments plunge after US ban

DJI’s shipment slump is not just a drone-company problem. Nikkei Asia reported on May 23 that shipments from Chinese drone makers including DJI have fallen as new domestic restrictions in China collided with a U.S. ban that has cut off sales of new DJI products in America. (asia.nikkei.com) The immediate effect is visible in two places at once. In China, tighter controls on consumer drone sales have hit a home market that once absorbed large volumes. (nofilmschool.com) In the United States, the Federal Communications Commission’s action has blocked new DJI products from normal sales channels, narrowing one of the company’s most important overseas markets. (nofilmschool.com) That combination matters because DJI has long been more than a drone brand. The company’s product line spans aircraft, cameras, stabilizers, microphones and related gear, so a regulatory barrier aimed at communications equipment can spill into adjacent categories. (asia.nikkei.com) ### Why did DJI shipments fall so abruptly? Nikkei Asia said the drop was driven by both Chinese domestic restrictions and the U.S. ban, leaving DJI and other Chinese drone makers looking for growth in other categories such as action cameras. Beijing moved earlier this year to tighten consumer drone sales in the capital. (asia.nikkei.com) Nikkei Asia separately reported on April 27 that Beijing would bar consumer drone sales citywide, describing it as China’s first citywide sales ban and linking it to security concerns around the country’s “low-altitude economy.” In the United States, the FCC’s covered-list regime has become the key choke point. (nofilmschool.com) The agency says the list includes equipment and services deemed to pose “an unacceptable risk” to U.S. national security or the security and safety of U.S. persons under the Secure and Trusted Communications Networks Act. (asia.nikkei.com) ### Why are gimbals and microphones caught up in a drone ban? No Film School reported on May 22 that DJI is “effectively banned from selling new drones in the US,” but said the practical effect has spread to gimbals, microphones and even portable power stations. (asia.nikkei.com) The publication said DJI has argued in petitions and filings that the FCC action has operated as a “blanket refusal” covering devices that do not directly connect to the internet and products without cameras or surveillance functions. That has left newer DJI products available in some markets outside the United States while many American buyers cannot get them through mainstream channels. (fcc.gov) ### What does the FCC action actually do? The FCC’s covered-list page says the Public Safety and Homeland Security Bureau maintains a list of equipment and services that are judged to pose national-security risks under federal law. (nofilmschool.com) No Film School reported in December that DJI had been added to that list, which in practice stopped new DJI drones from entering the U.S. market. The same outlet said existing DJI drones already in circulation could still be used, bought and sold. ### What happens next for DJI and for buyers? DJI appealed the FCC decision to the U.S. (nofilmschool.com) Court of Appeals for the Ninth Circuit, according to reporting cited by No Film School on Feb. 25. The company argued the FCC’s move had “serious procedural flaws and substantive defects,” the report said. For buyers, the next step is already under way. (fcc.gov) No Film School said other brands have started to make inroads while U.S. customers remain unable to buy many new DJI releases through traditional channels. Nikkei Asia said Chinese manufacturers are also looking to adjacent products such as action cameras as the drone market contracts. (nofilmschool.com 1) (nofilmschool.com 2)