Cisco’s Flip camcorder leaves the market

Cisco Systems Inc. recently announced the discontinuation of the popular Flip Video.

Cisco plans to shut its Flip camcorder business

Flip Video profits struggle to compete with capital equipment profits

Cisco plans to shut its Flip camcorder business

By PETER SVENSSON

The Associated Press

6:01 p.m. Tuesday, April 12, 2011

NEW YORK — Cisco Systems Inc., one of the titans of the technology industry, on Tuesday said it is killing the Flip Video, the most popular video camera in the U.S., just two years after it bought the startup that created it.

It appears to be a case of a big company proving a poor custodian of a small one, even one that makes a hit product. Cisco never meaningfully integrated the Flip Video into its main business of making computer networking gear.

Consumers are disappointed

Flip Video users are now lamenting the demise of a camera that broke new ground. It was inexpensive, pocketable and very easy to use, from shooting to editing and online sharing. These features have been copied by many other manufacturers, but the Flip Video still outsells them.

Nicole Bremer Nash, a freelance writer in Louisville, Ky., calls the Flip Video "the little camera that could."

"I was hoping they'd continue the line and expand the accessories for it instead of getting rid of it altogether," she said.

The Flip Video is named after an arm that flips out of the camera body and lets the user connect it directly to a computer. The camera even contains video-editing software that fires up on the computer.

"I just find it a really easy process to use, and that's why I really enjoy my Flip camera," said Courtney Sandora, another Louisville resident. She's been using Flip cameras for three years, and said she was "saddened and shocked" by Cisco's decision.

"There were many opportunities for Cisco to integrate Flip more into its vision of a networked world," said Ross Rubin, an electronics industry analyst at NPD Group. "The camcorders, for example, never even had Wi-Fi built into them."

"It was a brand the company had invested heavily in and could have leveraged for all kinds of consumer video experiences — video conferencing, security applications, et cetera," Rubin said.

No Explanation for Shut Down

Cisco didn't explain why it's shutting down the Flip Video unit rather than selling it. But the decision is part of a larger shakeup at the world's largest maker of computer networking gear. After several quarters of disappointing results and challenges in its core business, it's reversing years of efforts at diversifying into consumer products.

A week ago, CEO John Chambers acknowledged criticism that the company has been spreading itself too thin. He sent employees a memo vowing to take "bold steps" to narrow the company's focus.

The shakeup announced by the San Jose, Calif., company on Tuesday will result in the loss of 550 jobs, or less than 1 percent of its work force of about 73,000.

Cisco expects to take restructuring charges of no more than $300 million spread out over the current quarter, which ends April 25, and the following one.

The company is also retrenching on another consumer video business — home videoconferencing. In November, it started selling the umi, a $599 box that turns a high-definition TV into a big videophone. But signs soon emerged that the umi wasn't doing well. It cut the price of the unit in March, along with the monthly service fee, which went from $24.95 per month to $99 per year.

On Tuesday, Cisco said it will fold umi into its corporate videoconferencing business and stop selling the box through retailers. Instead, it will sell it through corporate channels and Internet service providers.

Cisco's Home Networking business, which makes Wi-Fi routers and has the 2003 acquisition of Linksys at its core, will be "refocused for greater profitability," but Cisco will keep selling the routers in stores.

Cisco shares fell 3 cents to close at $17.44 Tuesday. The shares are close to their 52-week low of $16.97, hit a month ago.

Analyst Simon Leopold at Morgan Keegan said the pullback on the consumer side is a good thing for investors, but not enough to set off a stock rally.

Flip Video profits struggle to compete with capital equipment profits

Consumer products have been a drag on Cisco's results because they carry profit margins that are far lower than the big-ticket capital equipment the company sells to corporations and governments, analyst Simon Leopold said. But the drag has been minor, because consumer products are still only a small part of Cisco's overall business.

Last year, the Flip Video was still the top-selling video camera in the U.S., with 26 percent of the market, according to IDC analyst Chris Chute. But that only amounted to 2.5 million units sold. Dedicated video cameras are small potatoes compared to digital still cameras and smart phones, both of which now shoot video.

Top competitors in the pocket camcorder field, which could benefit from Flip Video's demise, are Eastman Kodak Co. and Samsung Electronics Co. Rubin expects Kodak to pick up much of Cisco's market share.

Leopold said the performance of Cisco's corporate products has been a bigger factor for investors than the consumer business. He believes the selling is overdone because its market share losses are mainly in fringe products rather than bread-and-butter routers and switches.

Snowy Start

This spring semester began with freezing temperatures, lots of snow, and thick layers of slippery ice. As a result, the start of the semester was pushed back by nearly a week for some. I was one of those people. I was quite excited for it to snow but I don't think I was prepared for the entire city to shut down the way that it did. No one was traveling anywhere because it just wasn't safe. I found myself wishing that I would have purchased my textbooks in advance to get off to a good start while I was trapped inside of my apartment. I had a serious case of cabin fever by the time the ice had melted enough to safely leave the apartment. I literally sat inside doing nothing for days. I was anxious to go to school just to have some human interaction. Luckily, all of my professors were understanding and hadn't required that any assignments be completed for the first class. Others weren't so lucky. Its not so often that the weather shuts down the entire city for so long. Has the weather ever held you hostage for days at a time?

Pretty Brown Babies For Our Pretty Brown Babies

Last weekend my mom asked me to go online and find a really pretty black doll for my niece for Christmas. I said ok thinking it would be no problem. WRONG! Where are the pretty black babies?? I spent 2 hours searching the web for a nice doll. I wasnt interested in the $9.99 doll from Walmart or Target. Those are just white dolls dipped in brown paint. I want a really nice doll for her. Its important that she be black because we want my niece to appreciate her skin tone. Over the last few months we noticed she only prefers white dolls. Unless we promote positive images of black women and steer her in the right direction, she probably wont see many.
About 5 years ago my mom bought my little sister 2 beautiful black dolls. Each doll was about $35. They looked so real and precious. Well, I finally found the type of dolls I was looking for and they were $70+. Can you say "breaking the bank"? It was such a disappointment. Can the doll cook my dinner too? I mean, these aren't porcelain dolls. Just the soft, cuddly ones. It should not be this hard to find a nice doll. So I'm still wondering where are the pretty brown babies for our pretty brown babies?

Thanks, But No Thanks. I Dont Need Your Validation.

My friend had an interview today. She wore a wig to cover her natural coily, kinky hair. Her exact words to me were "I need to look more Anglo today. They might not like my natural hair". I told her that was ridiculous. Her hair has nothing to do with her work ethic. She replied "Whatever. I need this job!" I did not agree but I understood.

It got me thinking.

It wasn't crazy or shocking for her to feel the way that she did. People judge. If you need something bad enough you do what you have to do. It's disheartening. When will it be okay to be yourself in this world? When will it be okay to feel okay about being yourself? I'm no perfect being. I get self conscious at times but never enough to disown or deny any part myself. So when will it be okay to be yourself and feel good about it? When you no longer need the validation of others.

Last night I watched a TV show about a PR company (I think that's what it was). On the show the boss had just hired a woman and it was her first day. He told her she looked terrible and needed to step her game up. She was wearing flip flops, jeans and a tank with her hair in a low ponytail. That was understandable. The other women on the job were dressed very nicely. What floored me was the boss asked her to get lip injections. He set up an appointment and paid for it. After internally tussling with the suggestion she decided against it. In the end, she proved herself to be a good worker without the fat lips. I couldn't believe she even considered it.

Its not easy to get to a place of self-validation. It took me years. Sometimes I want to be validated because it feels good to know that someone approves of you. However, I don't need it. Neither do you. The sooner you all start living for yourself, the happier you'll be.

Peace and Blessings.

Aahhh, the National Black Arts Festival

I love my people! Today I went downtown to get a taste of this years National Black Arts Festival. Though I was definitely slow roasting in the sticky, Georgia heat I thoroughly enjoyed myself. I was ecstatic to see so many brown faces, natural coils, mud cloths, black paintings and busts, ethnic jewelry, ethnic food,....the list just goes on. The live entertainment livened my pulse and had my hips swaying, knees knocking, neck rolling. Ha! It was lovely! There were so many beautiful women and men. I think what I appreciated about their beauty was that it so full of African culture and pride. I was glad that I had ditched the weave and rocked my hair au natural. I felt like I belonged. So often I am a "dark rock surged upon, over-swept by a creamy sea". (Those were Zora Neale Hurston's words.) It was great to see people who looked and felt like me. All working together and having a good time.

I saw some sista's with locs past their butts. I saw one woman with skin three shades lighter than jet black. She was stunning. I saw a father and son both wearing beanies packed full with their dreadlocks. It was so cute! People would randomly bust a dance or start singing. Women were shopping together, laughing, and trying on jewelry. A few men were gathered around drums. Children were playing and running. The art was AWESOME! It was all so visually satisfying. I wish it came more than once a year.

I loved to merging of African and African American culture. And there was no hostility or separation like there can be between us. We were all black people today and I LOVED that feeling.

I could have easily spent well over $300 but I forced myself to just admire. I'm sticking to my budget if it kills me. The festival was definitely a joy and I will be in attendance next year...with lots of money on hand.