Networking outfit Cisco has pulled the plug on its Flip camera business and given pink slips and P45s to over 550 workers.
Cisco bought Flip in 2009 for $590 million and surprisingly enough the gear was quite popular.
However Cisco has decided to re-jig its business after losing shedloads of cash lately and Flip never made the company enough money.
Cisco chief executive John Chambers wants to concentrate on five areas to get the outfit making cash again, and making cameras is not one of them.
Word on the street is that Flip generated $211 million in the last quarter and this was down by $19 million from the quarter before.
What is surprising is that Cisco did not try to flog the business, or if it did, it could not find a buyer. However the days of stand-alone consumer cameras appear to be numbered, as more of the instamatic market uses their phones to take their dismal snaps with the heads cut off.
Besides, smartphones have the ability to shoot HD video if the moment requires it. Soon there will be 3D, too.
The Flip camera was made by Pure Digital Technologies and was in the shops in 2007 long before smartphones became common place
Part of the Flip’s problem is that it was the same size as a smartphone, they could not do anything else such as as upload to online sites or have Wi-Fi connectivity.
Cisco said that it will try to find the 550 new jobs within the company so there might not be former Flip staff sitting on street corners with a dog on a string, filming you as you drop money in their bowl.