Goodbye Flip camera
The flip camera manufacturing started in 2007. This is the first camera made for the average user, and was sized just right for the product. In just two years, the camera sold more than 2 million products, and it is still the top-selling camcorder on Amazon. Cisco is stopping manufacturing of the camera by the end of the year.
Modifying their area of expertise
In the last few years, Cisco has been expanding business efforts to contain customer goods. Cisco's CEO stated that the company, "lost its focus by attempting to attack too many companies," in a memo sent out last week Refocusing plans at Cisco contain the closing of the consumer product department. This involves the Flip video camera, the Linksys Wireless Home Audio system and the Flipshare system. Cisco is shifting to network products.
Other possibilities besides the Flip
One of the reasons Cisco is shutting down manufacturing is because the camera is now only one of several in the market, where when they started, they weren't. Sony and Kodak are just two of the several businesses that now have comparable Flip cameras to compete with Cisco. Modern smartphones even have the video quality now to compare with the Flip. The Flips main competitor might actually be smartphones. There is a large industry of individuals who do not have smartphones who use the Flip or similar products. It surprises many that Cisco is closing departments entirely and severing relationships with Pure Digital. A lot of people in this situation would sell off their parts of the company they're no longer going to use.
Articles cited
New York Times
nytimes.com/2011/04/13/technology/13flip.html
Article source - Cisco shuts down Flip video camera division by Newsytype.com.
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