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Cisco's Flip Flop
Today Cisco announced it is doing away with the Flip Video camcorder business. Cisco bought Pure Digital Technologies Inc., the maker of the Flip Video camcorder, for $590 million in 2009 (a mere two years after the San Francisco-based company made its first camera).
Now, as the company reconsiders its consumer business, the plan is to take a restructuring charge of $300 million. 550 jobs will be impacted.
According to AP Technology Writer, Peter Svensson, top competitors in the pocket camcorder field, which could benefit from Flip Video's demise, are Kodak and Samsung Electronics.
Brian Sullivan of FOX Business had this to say:
"...In flopping on Flip, Cisco acknowledging what technology is already telling us; that all these functions are migrating into just one device - your phone..."
"...Many smartphones already offering digital cams up to 8 megapixels and high-def video capability. As the price of memory succumbs to Moore's law, it won't be long before that device in your pocket you make calls and text on (can we even call them 'phones' anymore?) can hold thousands of pictures, an hour of high-def video and a quadrillion songs..."
"...Cisco's move today is telling us to say goodbye to stand-alone cameras. So make room in that hidden drawer. Right next to the mp3 player, Palm Pilot and calculator."
Yup, he called out our beloved Pilot.
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