Cisco Shuts Down Flip Video Camera Division

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Just two years and one month ago during March 2009 computer networking giant, Cisco, purchased the Pure Digital Technologies, the Flip Video makers, for $590 million (USD) in stock. The Flip Video camera had made prominent entry into consumer electronics, it is the best-selling camcorder on Amazon and is used by many ‘celebrity’ YouTube video creators even today.

“As part of the company’s comprehensive plan to align its operations,” Cisco will close all elements of its consumer business section. It plans on creating a transition plan to current FlipShare customers, who used the FlipShare software to upload directly to video sharing websites and to edit video.

Many analysts are blaming the rise of the smart phone for the death of the Flip Video camera. More devices are including HD video cameras such as, the iPod touch, the iPhone and many Android phones.

In a 2009 press release, Cisco believed the camera had ‘mass-market appeal,’ however Cisco had little experience in consumer electronics even stating it was part of their ‘build, buy, and partner’ strategy.  The strategy aimed to ‘expand existing product categories and enter new markets.’

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