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Cisco Exits Camcorder Segment, Zaps Flip

ConsumerNews
by Desire Athow
, 13 Apr 2011News

Cisco Systems has announced that it will be closing its Flip video camera arm, two years after having purchased its parent company, Pure Digital Technologies, for $590 million.

The networking giant will also dismiss 550 employees by the end of the year and take a $300 million charge as part of a restructuring process that will also impact on other Cisco divisions.

In a statement, the company's CEO, John Chambers said “We are making key, targeted moves as we align operations in support of our network-centric platform strategy," and added “As we move forward, our consumer efforts will focus on how we help our enterprise and service provider customers optimize and expand their offerings for consumers, and help ensure the network’s ability to deliver on those offerings.”

Like MP3 players and digital still cameras, the Flip brand has suffered immensely from the rise of more powerful smartphones that have morphed from feature handsets to powerful pocket devices.

An onboard camera like the one on the Nokia N8 is superior to that of the Flip, and can produce better still pictures as well.

Cisco has acquired a number of consumer-oriented companies over the last few years with networking company Linksys, set top box manufacturer Scientific Atlanta and KISS Technology amongst the high profile ones.

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