Insta360 Expands U.S. Presence as Regulatory Pressure Mounts on Competitor DJI
Shenzhen-based camera manufacturer Insta360 has opened its first flagship store in New York City, signaling a strategic push into the U.S. market. The company, which reports that the United States accounts for 30% to 40% of its revenue, is positioning itself as a consumer-focused alternative to DJI. While DJI faces significant regulatory hurdles, including a Federal Communications Commission (FCC) block on new product authorizations due to national security concerns, Insta360 continues to register new products. Insta360 has also launched an independent drone brand, Antigravity, which reports plans to manufacture in the U.S. in the coming years. Despite this expansion, Insta360 reported a 94% drop in net profit for the first half of 2026 compared to the previous year.
Key points
- Insta360 opened its first U.S. flagship store in New York City to target content creators and sports enthusiasts.
- The U.S. market represents 30% to 40% of Insta360's total revenue.
- The FCC has barred new DJI products from the U.S. market, citing national security risks.
- Insta360 launched an independent drone brand, Antigravity, which reports plans to shift manufacturing to the U.S.
- Some American consumers are switching from DJI to Insta360 due to product availability concerns.
What happened
Insta360 has established a physical retail presence in the United States with the opening of its first flagship store in New York City's Times Square. The move serves as a high-profile effort to market the company's smart cameras to the American influencer economy and outdoor sports community.
The expansion occurs as the U.S. government maintains strict regulatory scrutiny over Chinese technology firms. While DJI, a dominant player in the global drone and handheld camera market, has been effectively blocked from launching new products in the U.S. by the FCC, Insta360 remains operational and continues to register new devices.
Context
The U.S. Department of Defense has labeled DJI a Chinese military company, leading to its inclusion on the FCC's Covered List. This designation prevents the agency from authorizing new communications and video surveillance equipment from the company. In contrast, Insta360 has maintained that its products do not contain sensitive technology and that it complies with all regulatory requirements.
Insta360 has also entered the drone market through its independent brand, Antigravity. The company's leadership has stated intentions to move manufacturing from Asia to the U.S. to mitigate future regulatory risks. Meanwhile, both companies have faced financial headwinds, including rising memory chip costs and ongoing intellectual property litigation.
What's next
Insta360 plans to continue its U.S. market penetration, leveraging its availability in retail stores to attract users who are concerned about the long-term viability of DJI products in the region. Antigravity is expected to pursue its goal of domestic U.S. manufacturing for its A1 drone model in the coming years.
Why it matters
The divergence in regulatory treatment between Insta360 and DJI highlights the shifting landscape for Chinese technology companies operating in the U.S. market, where national security concerns are increasingly influencing consumer choice and corporate strategy.
