The phase-out, which is scheduled to take place during the first half of 2012, will enable Kodak to save more than $100 million a year, the company said. But it will incur, approximately, a $30 million charge from the exit of the business.
"For some time, Kodak's strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today's announcement is the logical extension of that process, given our analysis of the industry trends," said Pradeep Jotwani, President, Consumer Businesses, and Kodak Chief Marketing Officer.
Kodak will licence the brand to other companies and will continue to make film-based, disposable cameras and offer camera accessories and batteries. However, it will now concentrate heavily on other areas of the business including online and retail photo printing, desktop inkjet printing and its photo kiosks and digital dry-lab systems.
In the mid-1970s, Kodak owned a 90 percent market share of photographic film sales in the United States. However, it hasn't made a profit since 2007. In January this year it filed for bankruptcy in an effort to stabilise the company.
The company says it will honour all existing warranties on its products and continue to provide technical support.
Source: Wall Street Journal