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It was the Market leader with 35% of the camcorder market.

Anyway, they killed the product in the most expensive way possible. If they wanted to save money they could have just cut the R&D budget, reduced production and quietly sold off their inventory. Instead they waited until a few weeks before introducing the product before killing it.

PS: As to why: They make far more money pretending that video conferencing is difficult. N flip phones + N laptops (which people already have) + wifi = 2, 3, or 4 way videoconferencing on the cheap.




"They make far more money pretending that video conferencing is difficult. N flip phones + N laptops (which people already have) + wifi = 2, 3, or 4 way videoconferencing on the cheap."

You're probably right. Maybe Cisco realized they were in an Innovator's Dilemma situation and they are just trying to delay the disruptive innovation, and its attendant lower margins, by buying the Flip and killing it.




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