Exposing DJI and Ying Shi's Hand-to-Hand Battle: A Full-Scale War over Talent, Supply Chain, and Distribution Channels

In the opponent’s territory, DJI and Yingstone have both captured alarming market shares.

Text | “China Entrepreneur” Intern Reporter Lin Qiuyi

Reporter Wang Yijie

Intern Editor | Li Yuan Editor | He Yifan

Header image source | Visual China

Once in the fields of drones and panoramic action cameras, DJI and Yingstone, each occupying their own niche and coexisting, are now completely tearing down defenses, launching a comprehensive war across patents, products, supply chains, channels, and talent.

In March this year, DJI sued Yingstone on the grounds of a “dispute over the ownership of inventions made by former employees”; Yingstone quickly countered, accusing DJI of infringing on 28 of its patents.

The product-side confrontation is even more intense. On March 26, DJI released the Avata 360 panoramic drone, priced at an ultra-low 2,788 yuan per unit, directly targeting Yingstone’s panoramic drone Yingling A1’s core market.

According to supply chain sources, DJI may launch the Pocket 4 in April to solidify its absolute advantage in the handheld gimbal camera field. Yingstone also plans to release the Luna handheld gimbal camera in the first half of the year, penetrating DJI’s core territory.

Photography: Wu Ying

The blockade of the industry chain has shifted from covert to overt conflict. Nuwe, head of Yingling’s product research and development, told “China Entrepreneur”: Before Yingling A1’s mass production, DJI demanded some suppliers to choose “one of two.” The most difficult instance was when a key component supplier suddenly called and said they could no longer supply Yingstone, “The reason was straightforward—they had been threatened by DJI.”

The talent competition between the two has become a well-known secret. A former R&D employee who left Yingstone told “China Entrepreneur”: “Yingstone is recruiting people, and the salaries are slightly higher than DJI’s, just enough to attract attention.” DJI has also poached many Yingstone employees—due to frequent talent movement and the lenient non-compete agreements for grassroots staff, it has become an unspoken consensus.

To strengthen channel development, Yingstone has been poaching key marketing, channel, and R&D personnel from DJI since last year, aiming to replicate DJI’s distribution system. Meanwhile, DJI also took action: in November 2025, a physical store of Yingstone in Changsha was forcibly dismantled by property management citing an exclusive agreement when it moved into a photography mall.

From patent litigation, covert high-paying headhunting, to supply chain pressure and channel exclusivity, DJI and Yingstone are deeply entrenched in each other’s territories, entering a phase of close-range skirmishes in every market segment and industry chain link. The reshaping of the consumer imaging landscape has only just begun.

Patent Battle Begins

Recently, the patent lawsuit between DJI and Yingstone has been highly publicized. In March, DJI accused Yingstone of applying for six patents (covering drone flight control, structural design, etc.) that were made by former DJI employees within a year of their departure, demanding the patents belong to DJI.

Yingstone’s chairman Liu Jingkang responded: “The involved patents are independent innovations made after the employees joined Yingstone, and some inventors remained anonymous to prevent headhunting. He also countered that DJI’s products allegedly infringe on 28 of Yingstone’s patents, but Yingstone has not filed a lawsuit for now.”

Nuwe told “China Entrepreneur”: “Patent disputes between companies are normal in business competition, usually claiming that the other’s products use their patents, aiming for legal bans or profit sharing.” However, the patents DJI accuses of infringement are not used in Yingstone’s products. “Essentially, they want to create the perception of ‘Yingstone infringement’ in public opinion.”

Sources close to DJI told “China Entrepreneur” that the core legal basis for this lawsuit is the provisions in the “Patent Law of the People’s Republic of China” and its implementing regulations: “Inventions made within one year after the termination of employment, related to the work or tasks assigned by the original employer, are considered service inventions, and the right to apply for patents belongs to the original employer.”

An insider close to DJI also revealed the reason for this lawsuit: “A senior R&D leader on DJI’s drone line, when switching jobs, took the company’s Plan B solution and applied for related patents at Yingstone. The original team felt unbalanced, and the internal reaction was significant. DJI initiated this lawsuit partly to reassure its internal R&D team and protect their rights; partly to serve as a warning to prevent more people from jumping ship with technical plans.” Yingstone denied this account.

According to “China Entrepreneur,” preliminary communications with DJI’s lawyers and the court suggest DJI has a high chance of winning this case. Regarding Liu Jingkang’s claim that “the patents involved are not used in products,” relevant sources said: “Even if they are not used now, there’s no guarantee they won’t be used in the future. DJI needs to clarify ownership issues in advance.”

However, legal experts also pointed out that DJI’s lawsuit faces significant evidentiary challenges: “DJI must provide evidence that the technical achievements filed by employees within a year of leaving are related to their work or tasks assigned by the original company.”

Alongside the patent battle, the product front is also fiercely contested. Regarding DJI’s newly released Avata 360 panoramic drone, Nuwe said: “The core purpose of this product is only one— to counter Yingling A1.”

“It completely ‘copies’ our panoramic drone concept in terms of product definition, gameplay, and user experience. Essentially, it’s a move to undermine Yingling A1 by sacrificing profit margins.”

An industry insider analyzed the cost of Avata 360 for “China Entrepreneur”: two 1/1.1-inch square CMOS sensors, self-developed chips, plus storage and hardware, with core component prices rising, the cost per unit is at least 1,800–2,000 yuan.

Source: Visual China

“Based on DJI’s past pricing strategy, to maintain a 40-50% gross margin, the price should be at least three times the BOM (bill of materials) cost, around 5,000–6,000 yuan. But the current price is only 2,788 yuan, which makes it difficult to cover sales and channel costs.”

However, the aforementioned DJI insider countered: “DJI’s supply chain management is very strong. Before memory prices rose, they had already stockpiled storage chips, so their costs are controllable, and they don’t need to sacrifice too much profit.”

In response to DJI’s price attack, Yingling also launched promotional activities: “We will keep our prices within a reasonable range, actively compete, but won’t win by low-price internal competition.” Meanwhile, Yingling is continuously upgrading products via OTA (over-the-air updates), “the next OTA version will improve many current issues and introduce new gameplay, continuously optimizing user experience,” said Nuwe.

He believes the two panoramic drones have fundamentally different positioning and advantages. “In terms of hardware parameters, DJI’s camera sensor size has an advantage, and their image transmission level is still ahead of us, but we will thoroughly solve this in the next generation.”

He also sees clear advantages in Yingling A1: the whole machine weighs only 249 grams, which in most regions doesn’t require registration or reporting, making it friendly for beginners. Its endurance with a normal battery is over 20 minutes, and over 30 minutes with a long-endurance battery, while DJI’s Avata 360 with a normal battery can only fly for 14-15 minutes. “Additionally, our goggles with a larger display provide a more immersive and floating experience, which DJI lacks as a core feature.”

DJI blocks supply chains, Yingstone consolidates offline

Behind the fierce patent and product battles, DJI and Yingstone have both captured significant market shares in their respective advantageous areas.

For a long time, DJI has maintained over 70% market share in the global consumer drone sector, but the emergence of Yingling A1 has created a gap in DJI’s core territory. On its first day of sale, Yingling A1 achieved over 30 million yuan in sales in China within 48 hours, and over 30k units were shipped globally in the first month.

Source: Visual China

Although some voices in the market argue that shipment volume does not equal actual sales, and question Yingling A1’s data as “not impressive,” Nuwe responded: “Sales meet our internal expectations. Currently, channel shipments have reached several tens of thousands. We never expected it to be an instant hit; it’s a new category, and user recognition and market education take time.”

Additionally, a Yingstone employee told “China Entrepreneur”: “If you compare a newcomer in drones to the industry leader, in some ways we’ve already won the face value.”

Since last year, the competition between DJI and Yingstone has completely moved away from disjointed development. IDC’s latest “Global Handheld Smart Camera Tracking Report” shows that by 2025, Yingstone will hold 37% of the broader action camera market, ranking second, and in the panoramic camera market, Yingstone will lead with 66% market share.

DJI counters with frequent releases of Action 5, Action 5 Pro, Action 6 sports cameras, and Osmo 360 panoramic action camera. With strong supply chain control and multi-channel deployment, DJI is rapidly expanding its territory.

IDC data indicates that by 2025, DJI will hold 62% of the global handheld smart camera shipment market, ranking first, and in the broader action camera market, DJI’s shipment market share will approach 50%, surpassing GoPro comprehensively.

In flagship product lines, both sides are intensively attacking and defending. As of September 2025, DJI’s Osmo Pocket 3, a core cash cow in consumer imaging, has surpassed 10 million units sold. Based on its standard version price of 2,799 yuan, Pocket 3 has generated at least 27.9 billion yuan in revenue.

Recently, DJI is expected to launch an iterative product, Pocket 4. Meanwhile, Yingstone is rumored to release the handheld gimbal camera Luna this year.

To curb Yingstone’s rise, DJI’s efforts extend from products to upstream industry chains. Before Yingling A1’s mass production, Liu Jingkang publicly accused DJI of comprehensive supply chain blockade against Yingling.

An insider close to Yingling explained to “China Entrepreneur”: “The supply chain for consumer drones is highly concentrated. Many key component suppliers have deep cooperation with DJI. Yingling anticipated these risks early on. When Yingling approached suppliers, they clearly stated that it wouldn’t affect existing cooperation with DJI, only asking for supply guarantee agreements.”

But DJI’s influence exceeded expectations. “Many suppliers’ standard products, DJI is just one big customer, but they leverage their volume and order scale to demand that suppliers not supply Yingling. This is logical in business terms, but from an industry development and technological progress perspective, it’s not advisable.”

Beyond supply chain blockade, offline battles are also intense. DJI’s channel capabilities are well-known. After launching its first panoramic camera Osmo 360, DJI quickly captured the market, thanks to its strong new product channel deployment.

Yingstone, over the past year, has been trying to infiltrate DJI’s channel system. In July 2025, Yingstone recruited Zhang Bo, former head of DJI’s China sales, who had experienced the reform of DJI’s dealer system under Vice President Yuan Dong, and is well-versed in channel management.

Zhang Bo’s appointment immediately triggered a comprehensive overhaul of Yingstone’s nationwide distribution system, building an offline sales network based on DJI’s mature channel model.

Sources told “China Entrepreneur” that compared to DJI’s offline stores and online channels, which are only separated by a “service experience,” Yingstone emphasizes differentiation between online and offline. It also ensures sufficient stock in offline stores to avoid long-term shortages of popular products like DJI’s.

Photography: Wu Ying

To expand stores, Yingstone provides more support and traffic to offline outlets. A sales staff member at a Yingstone store in Beijing told “China Entrepreneur”: “During 618 and Double 11, Yingstone stores allow customers to use coupons from e-commerce platforms and Yingstone’s official flagship store, with the store applying for subsidies to cover the price difference.”

Yingstone also implements cross-channel rights and interests, establishing a unified price protection policy. During rapid expansion, store staff are encouraged to post creative videos, with a reward of 50 yuan for videos with over 100 likes.

These reforms have rapidly boosted Yingstone’s offline channels. Yuan Yue, head of Yingstone China, told “China Entrepreneur”: “In 2023, Yingstone had only five exclusive stores in China; now it has expanded to over 250. ‘Exclusive stores’ are usually operated jointly with core agents, with strict control to match Yingstone’s brand and operational plans.”

Wang Tao and Liu Jingkang

More decisive than channel wars is the battle for talent. From R&D, product development, to sales and channels, both DJI and Yingstone have a large number of employees moving between their core teams.

Yingstone’s talent poaching efforts are no secret in the industry. “There’s a barbecue stand downstairs at DJI headquarters, employees often go there after work. The owner of the stand has been developed into a headhunter by Yingstone, asking everyone if they want to join Yingstone, because they offer better conditions,” said the insider close to DJI.

Behind this full-scale industry chain war are two founders with very different styles and the distinct corporate cultures they have shaped.

DJI founder Wang Tao is often seen as “the solitary ruler sitting atop the Sky City.” Many stories circulate that label him a “dictator.” A well-known detail is that Wang Tao, a vegetarian, has the entire DJI headquarters cafeteria serve only vegetarian food, indirectly supporting many nearby restaurants.

Wang Tao Source: Interviewee

Some believe DJI’s recent aggressive moves against Yingstone are driven by serious loss of core talent, causing Wang Tao’s anxiety.

By 2025, the capital market is eager for DJI’s hardware teams. Former DJI employees who left to start companies include Tao Ye, founder of 3D printing firm Tu Zhu Technology; Wang Lei, founder of portable energy storage company Zhenhao Innovation; and Zhang Junbin, founder of robot vacuum company Yun Jing Intelligent. The success of their startups has also inspired many DJI employees to consider leaving.

A former DJI employee told “China Entrepreneur”: “I worked at DJI for many years and experienced its fastest growth from 2015 to 2024. DJI is still the top employment choice for many. Before 2021, its technological accumulation in drones—from flight control, perception, chip design to supply chain management—was industry-leading. Objectively, DJI’s fault tolerance remains high.”

He believes that judgments about Wang Tao are somewhat biased—he is not purely a business-oriented founder. “Wang Tao has a passion, for example, the bicycle product back then was driven by his personal hobby; putting cameras on quadcopters was also out of love, not just business.”

Now, Wang Tao’s so-called “dictatorship” is more reflected in personnel management and the decision-making style after the core team changes.

“From 2014 to 2018, when core executives like Tao Ye and Zhao Tao were still in the company, Wang Tao listened to many suggestions, debated fiercely, and accepted different opinions. As fewer people dared to speak No, and more people stopped thinking from the company’s development perspective, he became more assertive.”

Compared to Wang Tao, who rarely appears and is more a legend in the industry, Liu Jingkang is like his opposite—always active on the front lines of the internet, the company’s most outspoken “spokesperson.” Whether launching products, responding to industry controversies, or confronting DJI directly, Liu Jingkang is always straightforward and sharp, never hiding his attitude.

Liu Jingkang Source: Interviewee

This approach has also influenced Yingstone. Nuwe told “China Entrepreneur” that he and Liu Jingkang have had more than one intense argument during product development, even about product features and delivery timelines.

“I would list out all the reasons I rejected his ideas—why they don’t work commercially, resource constraints, risks—by laying all the information out, we can reach a consensus easily. Even if we ultimately agree with his decision, he will have us clearly state all pros and cons, share risks, and give us great decision-making freedom and authority.”

“In recruiting core R&D talent, JK (Liu Jingkang) is very tolerant of salary expectations, and doesn’t rigidly stick to hierarchical or salary systems,” Nuwe said. “This is a place that allows mistakes.” A Yingstone employee told “China Entrepreneur”: “In big companies, the most important thing is not to make mistakes; but at Yingstone, if you haven’t made any mistakes, it means you’re not making progress.”

Wang Tao’s extremity and control, Liu Jingkang’s openness and sharpness, ultimately shape the battlefield postures of the two companies: DJI defends with technological barriers and systemic advantages, while Yingstone attacks with agility and offensive tactics. The competition in the consumer imaging field continues to escalate.