The recent video camera which quickly gained the honor of being the top-seller in the U.S. last year, Flip has been astonishingly declared to be cut off by the parent company, Cisco Systems. The C.E.O. John Chambers, referred for it to be a part of refurbishing the company, on Tuesday.
 |
| Cisco's Flip Video Camera |
Cutting off a product which has received such positive reviews, and referred to be best low-cost handheld video was definitely a bitter decision. This announcement arrived only a week after Chambers had reportedly claimed that he has to make some "tough decisions" in order to stabilize the spending on some product areas.
Cisco acquired the company Flip, two years back in 2009 for the cost of $590 million and it was indicated that this deal is to build a stronger consumer business for Cisco. This abrupt judgment of cutting off the Flip and not even considering selling the company definitely highlights the pressure on Chambers to shape Cisco's money-losing consumer division. Even the spokeswoman for Cisco, Karen Tillman was also unanswerable when inquired why did the company not considered to sell the Flip business rather than killing it.
The statistics provided by the market research firm NPD Group, show that only year Cisco exclusively sold out 23% of all the camcorders in entire United States. This is even higher percentage than even better rivals like Sony and Eastman Kodak. Hence it has made its place in the heart of its users, probably the reason why Twitter was flooded with depressing tweets regarding the cutting off of Flip, as "RIP Flip" the trending worldwide that day.
Cisco has plans to finish its Flip phone inventory before totally cutting of the product line. Cisco is also going to cut off about more than five hundred of its total jobs employees.
No comments:
Post a Comment