Add this report to the mystery surrounding the company’s decision.
From Advertising Age:
“The camera was actually still selling fairly well. Flip’s sales grew 15 percent last quarter, according to Cisco, although it did say that was short of the 30 percent it had expected. NPD analyst Steve Baker said it is still ‘far and away’ the leading consumer video-camera company, and that although unit volume sales were flat from 2009 to 2010, there was no ‘evidence of an underlying fall in demand.'”
(Baker also spoke with The Wall Street Journal, noting: “An initial surge in sales of such devices cooled recently as some consumers began using smartphones to shoot high-definition video.” He also said that Cisco had fallen behind Kodak as the No. 2 company for point-and-shoot cameras.)
Industry observers have said Cisco made this decision based partly on Wall Street and partly on the growth of video cameras on cell phones and digital cameras.