Cisco pulls the plug on the Flip
Cisco discontinued the popular video camcorder brand, which had a 35 percent share of the camcorder market.
So farewell then, Flip. Cisco discontinued the popular video camcorder brand last week, just two years after purchasing its creator, Pure Digital, for $590 million. Cisco’s decision to shut down Flip is truly baffling, said Jim Fink in Investing Daily. Flip cameras generated around $400 million in sales last year, and the brand had a 35 percent share of the entire camcorder market. “Why would Cisco shut down such a successful product?”
The most likely answer is that the teleconferencing giant bought Flip solely for its technology, said David Pogue in The New York Times, then “shut it down” as soon as it found a way to stuff that technology into a smartphone. That’s the risk you take when you sell out to a “megalithic corporation.” You may get rich, but there’s always the chance they will “chop you up and leave you for dead.”