Despite strong sales and a loyal customer base, the Pure Digital division of Cisco, which makes the Flip camera, will be shut down. Image: charles_hudson / Flickr / CC BY-SA

Two years ago, network company Cisco purchased Flip camera maker Pure Digital for $590 million. Today, the company announced that it would be shutting down Flip camera production as a part of a re-organization. This re-organization will also result in the loss of 550 jobs.

Production of Flip camera to end

The Flip camera first went on sale in late 2007. The small, handheld camera was one of the first video camera products that was easy to use and priced for the general consumer. In just two years, the camera sold more than 2 million products, and it is still the top-selling camcorder on Amazon. Despite its popularity, Cisco plans on phasing out the Flip camera by year’s end.

Cisco ‘refocusing’ efforts

In the last few years, Cisco has been expanding business efforts to include consumer products. In a memo sent to the company last week, Cisco’s CEO expressed concern that the company had “lost its focus by trying to attack too many businesses.” In order to refocus, the company plans on shuttering its entire consumer products division. This includes the Flip video camera, the Linksys Wireless Home Audio system and the Flipshare system. Instead, the company will be reinvesting in network products.

Alternatives to the Flip

The Flip camera was one of the first consumer-level simple-to-use video cameras, but competition is being cited as one of the reasons Cisco plans on shutting down Pure Digital. Kodak, Sony and other optics companies have their own versions of stripped-down, small video cameras. Many smartphones now also have the capability of taking video of a similar quality to the Flip. There are some who consider smartphones direct competitors to the Flip camera. There is a large market of people who do not have smartphones who use the Flip or similar products. The surprising part of this story is not that Cisco is ending its association with Pure Digital but that the company will be shuttered, rather than sold.

Source

New York Times: http://www.nytimes.com/2011/04/13/technology/13flip.html

Post By bryanh (1,420 Posts)

Connect

Do you have a fantastic idea related to this article, but just don't have the money you need to start your own company or side-business? Get the loans you need from https://personalmoneynetwork.com to help get your new company underway, from the small loan professionals at PersonalMoneyNetwork.

PG&E to pay $70 million for pipeline tragedy

PG&E to pay $70 million for pipeline tragedy

Pacific Gas and Electric Co., a northern California utility, has agreed to pay $70 million to the California town of San Bruno for a pipeline explosion that killed eight people in 2010. Company says it’s remorseful The San Francisco-based power company’s president, Chris Johns, released a statement Monday, saying PG&E is sorry and eager to […]

Judge stabbed and deputy shot in Washington courthouse

Grays Harbor County Courthouse

Following a standoff in a Washington state county courtroom Friday, a man reportedly escaped after shooting a sheriff’s deputy in the shoulder and stabbing a judge in the neck. The man is still at large. Treachery among the tree farms The incident occurred Friday afternoon in the western Washington town of Montesano, which bills itself […]

Microraptor was one flashy little dinosaur

Microraptor fossil

A team of Chinese and American scientists have found that Microraptor, a small four winged dinosaur that went extinct about 130 million years ago, was likely black and almost certainly had glossy, iridescent feathers. Until now, the coloring of extinct creatures was a matter of pure speculation. That may no longer be the case. The […]

Autocorrected message leads to school lockdown

Homage to the Sun

Adjacent schools in Georgia were locked down for two hours Wednesday after a text message reportedly warned of a “gunman” on campus. Later, it was learned that the message was the result of a smartphone autocorrect function, attempting to “fix” the misspelled slang word “gunna.” A series of mixups A series of mixups led to […]