Flip Video parent company Cisco announced it will close the Flip division as part of a larger restructuring of its consumer brands. Cisco acquired Flip maker Pure Digital Technology in 2009 for $590 million in stock, making it a supremely expensive adventure for the networking giant. So what does this mean for consumers?
Cisco stated it will “support current FlipShare customers and partners with a transition plan,” although it hasn’t yet released details. Fortunately Flip is far from the only option for fans of shoot-and-share video, so those with a need for cameras that slot in between smartphones and full-on camcorders. Three of the top five sellers in Amazon.com’s shoot-and-share category are Kodaks:
As long as people demand these products — and we think they will — manufacturers will continue to make them. Look for deals as merchants seek to clear out their inventories. Hopefully Kodak will innovate in this space despite losing its biggest competitor. Point-and-shoot cameras, also facing intense pressure from smartphones, may see improved video capabilities as manufacturers attempt to fill the Flip vacuum. We believe that smartphones use will grow in terms of video shot and shared, but there will be a need for simple non-phone devices for some time (think students and such).