Cisco Will Refocus on Networks, Killing the Flip Camera

Posted by at 11:09 am on April 12, 2011

Cisco today axed its Flip camera division in a bid to bring the company back into shape. The company provided few details but said its new “network-centric platform strategy” meant the former Pure Digital group had to be closed. Those on the FlipShare service would be supported through a “transition plan,” though Cisco didn’t say what that was or for how long.

The shift would also involve tuning the home network business, such as the Linksys routers, to push “greater profitability” and tie into Cisco’s core network hardware. The Umi video chat system would fold into its business telepresence group rather than sell to the home.

The move marks an end to the brief five-year history of the Flip. The first model was launched by Pure Digital in 2006 as a way of providing simple digital video recording without the high prices or complexity of having to own a full camcorder. Its popularity grew enough that Cisco bought Pure Digital in 2009 for $590 million in stock. Last year the Flip Business grew by 15%, even with the growth of HD capable cell phones. Cisco thought the Flip line would grow by 30% last year.

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