Networking giant Cisco has sent 550 pink slips this weekend to employees of FLIP Video, the most popular hand held video camera in the US. I own a couple of these and I am also shocked about this decision by John Chambers and his men but this is apparently the only thing they can do in this situation. The Flip hasn't been selling well in the US Market since a lot of competitors also ventured into the same gadget. The price difference is huge with Flip pegged at under 200 dollars and the profit from it wasn't as it was expected to be. Though I have been a huge Flip Ultra user these past few years, I thought they were stable and can provide after sales support. They didn't concentrate on providing so and the technical issues of each unit were piling up. The forum was their only channel and things like these can't be manually fixed. They usually throw it out if it is broken. Not a good investment even for a cheap camera.
As for where those employees will go, no one knows but since it did perform poorly this year I hope their decision to move the UMI into enterprise would bear something good. A lot of UMI users already know how expensive the unit is and with that bundled with Verizon or whatnot for connections it'll be hard to recuperate from the losses the already incurred. If money from this project would not increase this year. UMI might be the next one to say goodbye.
In the meantime.. here's John Chambers calling ducks inside the office... LOL
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