Cisco Ditches Flip and $590 Million

darthcamaro writes "Remember the Flip? When Pure Digital Technology first came out with the device it was one of the hottest gadgets, providing users with an ultra-portable camcorder. Then Cisco came along and bought the Flip for $590 million in 2009. Now less than two years later, Cisco is throwing the money, 550 employees and the Flip out the door." Wired has an analysis of why Flip floundered. I hope this means I can find a AA-powered Flip UltraHD for $50 in a clearance bin.

Comments

It's not just the fact that smart phones did it

[sandytaru]

The article asserts that smart phones recorded just as well, making the Flip redundant. I go a step further and postulate that smartphones are frankly more convenient. I don't always grab my camcorder when I'm heading out the door just in case I see something awesome and film worthy on my way to work. But I absolutely have to have my cell phone. I do not leave home without it. And hey, if I happen to need to capture a few minutes of video on my phone, I have a 16 gig SSID chip in it AND I can just email the darn thing to myself and have it posted on YouTube or Twitter within ten minutes because of my data plan (something that even a wi-fi connected Flip phone couldn't do most places.)

Re:This is what companies do

[Ruke]

Cisco doesn't need to sell Flips in order for the purchase to be profitable. It's highly probably that they purchased Pure Digital in order to strengthen their patent portfolio. If the iPhone or Android devices make use of some inane portable-video technology that Pure Digital patented in designing the flip, it's possible for Cisco to make back their money in licensing agreements with other hardware manufacturers.