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PCWorld: 3 Reasons the Flip Got Axed

As you may have heard, Cisco pulled the plug on the Flip camcorder yesterday. This may have come as a shock to some, considering that the Flip was pretty well received by consumers since its debut five years ago.

We were particularly fond of the Flip for seniors because it was lightweight, compact and easy to use. In essence, it was the epitome of senior friendly. The Flip was an ideal camcorder for shooting home movies, which downloaded with ease via the built-in USB arm.

Well, regardless of our feelings for the Flip, it will be no more. And PCWorld thinks there’s three reasons for this.

Smartphones

Many of today’s smartphones are able to capture high-definition video. While this video quality may be a bit inferior to the Flip’s, the difference isn’t usually apparent enough for a consumer to carry (and buy) a smartphone and a Flip camera. This smartphone trend may also spell bad news for digital cameras, as most phones also boast high-resolution still camera functions.

Cisco’s Profit Margins

Believe it or not, the Flip’s sales figures have actually increased since Cisco acquired this business two years ago. However, PC World notes that the Flip’s 30 percent profit margins were still too low for Cisco, which is “used to high profit margins” – whatever that means.

Re-strategizing

A few experts have surmised that the Flip’s demise may be a result of Cisco wanting to satisfy investors. They’re supposed prime concerns? Networking products and communications technology.

Click here to read PCWorld’s original story.

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